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A Model for Evaluating the Effects of Thai Government Taxation of Rice Exports on Trade and Welfare
Author(s) -
Wong Chung Ming
Publication year - 1978
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1240162
Subject(s) - incentive , welfare , economics , production (economics) , consumption (sociology) , government (linguistics) , imperfect , international economics , economic surplus , agricultural economics , international trade , microeconomics , market economy , social science , linguistics , philosophy , sociology
The implications of Thai government taxation of rice exports through the export premium on trade and welfare are examined by means of a dynamic simultaneous equation model which allows for interactions between the rice production, consumption, and export sectors. Although the export premium may have generated a net welfare gain for Thailand over the 1961–70 period, owing to the highly imperfect nature of the international market, it results in a substantial transfer from the farmers and may have adverse effects on their incentives to adopt modern inputs in paddy production.