Agricultural Production Incentives in Taiwan: Some Comparative Advantage Perspectives

Hsi-huang Chen

No 197446, 1987 Occasional Paper Series No. 4 from International Association of Agricultural Economists

Abstract: This study estimates the respective comparative advantage of the production of five crops in Taiwan and investigates how government policies have influenced their production and trade. Rice, soyabeans, and maize cannot be produced economically because their domestic resource costs are higher than their world market prices. However, the Taiwanese farmer does not necessarily conform to the criteria for domestic resource cost coefficients. With government price incentives, the private profitability of rice, maize, and soyabeans reveals only positive advantages, which gives farmers an incentive to produec those crops. On the other hand, sugarcane and bananas are subject to relatively high negative effective rates of protection.

Keywords: Agribusiness; Agricultural and Food Policy; International Development (search for similar items in EconPapers)
Pages: 5
Date: 1987
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaaeo4:197446

DOI: 10.22004/ag.econ.197446

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