In Search of Efficient Income Redistribution Policy in the Process of Market Opening : With an Emphasis on Agriculture
2007
Lee, Y.K. (Yeungnam University, Gyeongsan, Republic of Korea), E-mail: yklee@ynu.ac.kr
This paper explores efficient income redistribution policies to compensate for producers' income loss resulting from market opening by examining the current import tariff and feasible policy alternatives, under the assumption that tariffs on the imported agricultural products will be completely eliminated. Theoretical analysis is conducted to assess the efficiencies of the policies under consideration along with an empirical study within the surplus transformation curve framework. The current import tariff used to protect agricultural sector proves to be very inefficient as was expected.
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