Analysis of the impact of corn export prices on the production of corn in the ASEAN [Association of Southeast Asian Nations] region
1984
Soriano, H.S.
This study was conducted to analyze the potential economic benefits that might accrue as a result of trade liberalization of corn within the region. The results reveal that a cooperative undertaking through liberalization of corn trade in the region would have significant impact on the welfare of the region's agricultural sector. The normative study indicate that corn production in the region is very responsive to export prices within the range of 90-120 percent of each country's base-year export price for corn, and less responsive along the 70-90 percent range. Self-sufficiency in corn appears secure within the region as long as the domestic market prices of corn and all other crops, costs of inputs, and all other costs remain constant. Corn, at each country's base-year export prices, is found to be competitive with soybeans and groundnuts. The impact on agricultural employment, capital utilization, and net income appears very responsive to export prices within the range of 90-120 percent of each country's base-year export price for corn, but less responsive along the 70-90 percent range
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