Impact of wheat policy on traditional and modern rainfed wheat production in Jordan.
1990
Al Habbab M.S. | Jabarin A.S.
Main purpose of this research was to examine the impact of the Jordanian Government Price Policy related to wheat produced in the rainfed areas. Policy analysis matrix was used to calculate the different protection coefficients. The nominal protection coefficient on output for wheat produced by both traditional and modern technologies was (1.01), which means that the government price policy has allowed the private wheat price to be 1% higher than what it would have been without the policy. On the other hand, the nominal protection coefficient for inputs used in wheat production by both technologies was (1.06) which exceeds one, due to the 6% fees payable for import licencing. This means that the farmer is paying 6% higher costs than it would have been without the policy. The effective protection coefficient (EPC), for the two technologies, was also very close to one. The domestic resource coefficient, which measures the efficiency of the comparative advantage of a crop, was (0.23) for the traditional technology and (0.11) for the modern technology of wheat production. This result indicates that the modern technology which is applied to wheat production in the rainfed areas improved the efficiency of allocation of the domestic resources.
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