Reexamination of price differences between foreign and Japanese agricultural products introducing the domestic production premium
2005
Adachi, H.(Kyushu Univ., Fukuoka (Japan)) | Suzuki, N.
There is an opinion that Japanese agriculture is still highly protected. Agricultural protection is classified into fiscal expenditures and market price supports. Market price supports are defined as price differences between foreign and Japanese products. One of factors that form price differences is maintenance of high tariffs of rice and dairy products. However, tariff rates of Japanese agricultural products are already low overall. Therefore, it is difficult to explain the price differences only by tariffs. We think that some part of the price differences can be explained by the domestic production premium, which is higher appreciation of domestic products by Japanese consumers. In this study, we measured the component rate of each factor in agricultural protection in Japan by using the PSE data of OECD. We obtained the result that the ratio of protection by tariffs was about 56 %, the ratio of the domestic production premium was about 40 %, and the ratio of fiscal expenditures was about 4 %, when rice and dairy products were excluded.
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