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PRODUCER BENEFITS FROM TECHNOLOGY INDUCED SUPPLY SHIFTS IN THE EC COTTON REGIME
Author(s) -
Herruzo A. C.
Publication year - 1992
Publication title -
journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.157
H-Index - 61
eISSN - 1477-9552
pISSN - 0021-857X
DOI - 10.1111/j.1477-9552.1992.tb00198.x
Subject(s) - production (economics) , economics , position (finance) , agricultural economics , distribution (mathematics) , technological change , output elasticity , natural resource economics , business , microeconomics , mathematics , macroeconomics , finance , mathematical analysis
This paper examines the effect of the current EC cotton regime on the level and distribution of potential benefits from technological change in cotton production in Greece and Spain. Results indicate that technical innovations in cotton production benefit producers but do not affect EC consumers and taxpayers. In addition, technical advances in cotton production result in important inter‐country effects. These effects depend strongly on the relative magnitude of each country output and supply elasticity, the smaller producer (Spain) being in a riskier position. Finally, the current EC cotton regime, compared to a system which partitions the maximum guaranteed quantity between the two producer countries, benefits the innovative country.