Supply response analysis of rice farms in Korea [Republic]
1986
Shin In Sik
The major findings of this study are: (1) there is no significant difference in the yield response among the small, medium and large farms; (2) the rice supply response in terms of area planted differs by farm size; (3) aggregate output, yield, and area are not responsive to changes in paddy price; (4) fertilizer price is not a major factor affecting the use of fertilizer and therefore of yield and output levels; (5) farm wages does not appear to be a significant variable affecting output and yield; (6) yield and output are highly responsive to irrigation; and (7) the number of farm households is negatively correlated with area for large farms and positively correlated with area for small farms. Based on these results, it was concluded that the price support policy is not an effective tool for achieving rice self-sufficiency in Korea and that under current conditions the goal of self-sufficiency appears unrealistic as the country has no comparative advantage in rice production. Nonetheless, modest increases in rice production may be achieved through the development of new and adaptable technologies, greater investm1835ents in irrigation facilities, and support for farm mechanization through the promotion of cooperative machinery ownership and utilizat
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