scholarly journals Government Interventions, Market Integration, and Price Risk in Pakistan’s Punjab

1996 ◽  
Vol 35 (2) ◽  
pp. 129-144 ◽  
Author(s):  
Takashi Kurosaki
Keyword(s):  
Market Integration ◽  
Salient Feature ◽  
Government Support ◽  
Price Support ◽  
Government Interventions ◽  
Support Mechanism ◽  
Support Price ◽  
The Government ◽  
Unexplained Variation ◽  
Market Surplus

This paper empirically examines the spatial and intertemporal price relations of grains in Pakistan’s Punjab. The salient feature of the paper is that quantity variables such as market surplus and government release are incorporated in the price arbitrage model to quantify the effects of government interventions. Regression analysis using three-year crosssection data shows that the farm-gate prices of wheat after harvest are mostly explained by the government support price while those of Basmati paddy have more unexplained variation. This difference could be due to a difference in the price support mechanism. Investigation on intertemporal price relations shows that wholesale wheat prices regularly increase at the rate of storage costs in the first half of a food year, and that the price rise is repressed by the government release in the second half only in a normal year.

Effectiveness of Auctions in Securing Price Support for Farmers: The Case of a Grain Market in India

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Neha Gupta
Keyword(s):  
Lower Cost ◽  
Secondary Data ◽  
Price Support ◽  
Minimum Support ◽  
Minimum Price ◽  
Support Price ◽  
The Government ◽  
Nonparametric Estimates ◽  
The Impact ◽  
Analyze Data

Abstract This paper reviews rice procurement operations of Government of India from the standpoints of cost of procurement as well as effectiveness in supporting farmers’ incomes. The two channels in use for procuring rice till 2015, were custom milling of rice and levy. In the first, the government bought paddy directly from farmers at the minimum support price (MSP) and got it milled from private millers; while in the second, it purchased rice from private millers at a pre-announced levy price thus providing indirect price support to farmers. Secondary data reveal that levy, despite implying lower cost of procurement was discriminated against till about a decade back and eventually abolished in 2015 in favor of custom milling, better trusted to provide minimum price support. We analyze data from auctions of paddy from a year when levy was still important to investigate its impact on farmers’ revenues. We use semi-nonparametric estimates of millers’ values to simulate farmers’ expected revenues and find these to be rather close to the MSP; a closer analysis shows that bidder competition is critical to this result. Finally, we use our estimates to quantify the impact of change in levy price on farmers’ revenues and use this to discuss ways to revive the levy channel.

scholarly journals Residents’ Willingness for Centralized Biogas Production in Hebei and Shandong Provinces

2019 ◽  
Vol 11 (24) ◽  
pp. 7175 ◽  
Author(s):  
Qiang Wang ◽  
Thomas Dogot ◽  
Guosheng Wu ◽  
Xianlei Huang ◽  
Changbin Yin
Keyword(s):  
Financial Support ◽  
Biogas Production ◽  
Family Characteristics ◽  
Government Support ◽  
Environmental Knowledge ◽  
Rural Residents ◽  
Support Mechanism ◽  
Subsidy Rate ◽  
The North ◽  
The Government

Nowadays, in the North China Plain (NCP), most counties and suburban rural regions are promoting the "coal to gas" program under the situation of strong government support of large and medium-sized centralized biogas production (CBP) projects. This paper is aimed at the CBP projects, focuses on rural residents’ “willingness to use (WTU)”, “willingness to buy (WTB)” and the influencing factors for WTU/WTB. Through the analysis of rural residents from Hebei and Shandong provinces that belong to NCP in this survey, we find that 85% of respondents support the CBP program and the WTB is 63.15 CNY/year per capita, which is much lower than the cost of rural CBP in existing survey regions. The participation of rural residents is not only a manifestation of personal and family characteristics; understanding of environmental knowledge, attitudes, and household energy practices are more important. These non-economic factors seriously affect WTU/WTB. Hence, it is necessary to appropriately increase the government revenue to such projects, strengthen government guidance and publicity, improve the environmental knowledge and attitude of rural residents and guide residents’ practice. Based on a fully understanding of residents’ consumption decision mechanism, we establish a financial support mechanism due to the demand response, adopt a correct calculation for financial support, such as a reasonable subsidy rate, and seek the greatest commonality of cost, financial support, and demand.

scholarly journals The Impact of the Direct Peanut Price Support Program on Farm Income and Government Cost

1975 ◽  
Vol 7 (1) ◽  
pp. 247-252 ◽  
Author(s):  
Inbum Song ◽  
John R. Franzmann ◽  
John F. Mead
Keyword(s):  
Market Price ◽  
Support Program ◽  
Farm Income ◽  
Price Support ◽  
Support Price ◽  
The Government ◽  
Parity Price ◽  
Operation Results ◽  
On Farm ◽  
The Impact

Two major programs — allotment-quota and price support — have been in force to support peanut farming since 1952. The purpose is to restrict production of peanuts while supporting the price of peanuts produced. Production is restricted through the allotment-quota program, determined by the Secretary of Agriculture, and converted to a national acreage allotment. However, minimum national acreage allotment has been fixed at 1.61 million acres. The price support program provided that price be supported no lower than 75 percent of the parity price of peanuts. Under the programs, peanuts produced by the grower are sold on the market at the support price for edible uses and excess quantities are sold to the government at the support price. Peanuts purchased by the government are stored and later sold for crushing at the going market price. Because peanuts for crushing command a much lower price than the government acquisition price, the purchase-and-resale operation results in a net loss representing public cost of the peanut price support program.

scholarly journals How has the minimum support price policy of India affected cross-commodity price linkages?

2021 ◽  
pp. 1-18
Author(s):  
Luis Emilio Morales ◽  
Jean Balié ◽  
Emiliano Magrini
Keyword(s):  
Market Integration ◽  
Commodity Price ◽  
Price Policy ◽  
Price Transmission ◽  
Agricultural Commodities ◽  
Price Shocks ◽  
Minimum Support ◽  
Risk Levels ◽  
Support Price ◽  
The Government

For several decades, the government of India has implemented a minimum support price (MSP) policy for agricultural commodities to reduce price risk levels for farmers. Concerns have been raised about whether this policy could affect market integration of related agricultural products, modify price incentives, and ultimately alter resource allocation and production between commodities. This study uses a panel vector auto-regression model across six states for the period 2002-2017 to analyse the effects of the MSP on the transmission of price shocks between cereals and oilseeds. The results demonstrate that the MSP partially and completely offsets price linkages between agricultural commodities, potentially introducing distortions in price incentives that affect land allocation and production between commodities. Beyond the effects of the MSP across commodities, Indian authorities can expect that price shocks on maize be transmitted to soybean over the next production period. Finally, this study demonstrates that the use of alternative data frequencies can identify differences in market reactions over time that can be related to production cycles and delays in price transmission.

scholarly journals Effects of Price Transmission and Exchange Rate Elasticities of Three Developing Countries on the World Cotton Trade

2017 ◽  
Vol 5 (1) ◽  
pp. 91
Author(s):  
Ozcan Ozturk
Keyword(s):  
Exchange Rate ◽  
Price Transmission ◽  
World Cotton ◽  
Price Support ◽  
Government Interventions ◽  
Weak Exchange ◽  
The World ◽  
Exchange Rate Movements ◽  
The Government ◽  
Cotton Trade

This paper examines (i) whether the government interventions in the forms of border protection and as price support have weakened the integrations of domestic cotton markets of China, Brazil and Turkey with the world cotton market and (ii) how a weak cointegration of a domestic market with international market affects the world cotton trade. We address the first question by estimating price and exchange rates transmission elasticities using an error correction model and the second question by conducting a partial equilibrium model. Results indicate that the estimated elasticities are significantly smaller than unitary, which suggests that the cointegration is weak and the law of one price (LOP) does not hold. Furthermore, when cointegration is weak, exchange rate movements have lower impact on exports, imports and prices than they do in the case of strong cointegration.

scholarly journals On the Wheat Price Support Policy in Pakistan

2019 ◽  
Vol 1 (3) ◽  
pp. 80-86
Author(s):  
Muhammad Aamir Shahzad ◽  
Amar Razzaq ◽  
Ping Qing
Keyword(s):  
Financial Burden ◽  
Production Costs ◽  
Price Support ◽  
Minimum Support ◽  
Wheat Production ◽  
Support Price ◽  
The Government ◽  
The Impact ◽  
Heavy Financial Burden ◽  
Price Policies

Wheat is Pakistan's main food and strategic crop. Currently, the government controls wheat prices through a minimum support price (MSP) policy to encourage production. However, despite the increase in wheat production, input costs and output prices have been increasing over the years. This paper aims to analyse the impact of wheat support price policies. We use data from different government sources to estimate the financial implications of MSP and compare the support price policies of India and Pakistan. We find that Pakistan’s current minimum support price policy encourages farmers to produce larger quantities of wheat, but this places a heavy financial burden on the country's finances. Our results indicate that the higher MSP of wheat has made the country lose its competitiveness in the international market. Besides, we found that the cost of wheat production in Pakistan is much higher than in India. These higher production costs force the government to raise the MSP to maintain farmers' profitability. The high MSP is guaranteed by subsidizing the procurement and release of wheat, which imposes a heavy financial burden on government finances. In addition, the rise in wheat prices in recent years has also hurt consumers. Policymakers can redistribute subsidies by subsidizing wheat inputs, especially fertilizers and seeds, to reduce production costs. To this end, the best policy intervention may be to provide input subsidies rather than subsidies on purchase prices. A reduction in input costs will correspondingly reduce output prices, which will increase farmers' profitability, consumer surplus and the international competitiveness of Pakistani wheat.

The Systemic Effects of Prudential Regulation Toughening:The Results of a Stress-test for Russian Banks

2012 ◽  
pp. 4-31 ◽  
Author(s):  
M. Mamonov ◽  
A. Pestova ◽  
O. Solntsev
Keyword(s):  
Financial Services ◽  
Banking Sector ◽  
Stress Test ◽  
Credit Market ◽  
Capital Adequacy ◽  
Government Support ◽  
Government Ownership ◽  
Prudential Regulation ◽  
The Government ◽  
The Stability

The stability of Russian banking sector is threatened by three negative tendencies - overheating of the credit market, significant decrease of banks capital adequacy ratios, and growing problems associated with banks lending to affiliated non-financial corporations. The co-existence of these processes reflects the crisis of the model of private investments in Russian banking sector, which was observed during the last 20 years. This paper analyzes the measures of the Bank of Russia undertaken to maintain the stability of the banking sector using the methodology of credit risk stress-testing. Based on this methodology we conclude that the Bank of Russias actions can prevent the overheating of the credit market, but they can also lead to undesirable effects: further expansion of the government ownership in Russian banking sector and substitution of domestic credit supply by cross-border corporate borrowings. The later weakens the competitive positions of Russian banks. We propose a set of measures to harmonize the prudential regulation of banks. Our suggestions rely on design and further implementation of the programs aimed at developing new markets for financial services provided by Russian banks to their corporate and retail customers. The estimated effects of proposed policy measures are both the increase in profitability and capitalization of Russian banks and the decrease of banks demand for government support.

The role of graining in ensuring food security

2020 ◽  
pp. 75-79
Author(s):  
R. M. Gambarova
Keyword(s):  
Food Security ◽  
Comparative Analysis ◽  
Systems Approach ◽  
Point Of View ◽  
Government Support ◽  
Grain Production ◽  
The Government ◽  
Favorable Conditions ◽  
Grain Farms

Relevance. Grain is the key to strategic products to ensure food security. From this point of view, the creation of large grain farms is a matter for the country's selfsufficiency and it leading to a decrease in financial expense for import. Creation of such farms creates an abundance of productivity from the area and leads to obtaining increased reproductive seeds. The main policy of the government is to minimize dependency from import, create abundance of food and create favorable conditions for export potential.The purpose of the study: the development of grain production in order to ensure food security of the country and strengthen government support for this industry.Methods: comparative analysis, systems approach.Results. As shown in the research, if we pay attention to the activities of private entrepreneurship in the country, we can see result of the implementation of agrarian reforms after which various types of farms have been created in republic.The role of privateentrepreneurshipinthedevelopmentofproduction is great. Тhe article outlines the sowing area, production, productivity, import, export of grain and the level of selfsufficiency in this country from 2015 till 2017.

STATE SUPPORT FOR «GREEN» INVESTMENTS AND MARKET «GREEN» FINANCING: FOREIGN EXPERIENCE

2019 ◽  
pp. 97-108
Author(s):  
L.S. Kabir
Keyword(s):  
Economic Growth ◽  
Government Support ◽  
Policy Support ◽  
Green Economy ◽  
Economic Policies ◽  
State Support ◽  
Green Technologies ◽  
Foreign Countries ◽  
The Government ◽  
Green Investments

The present study reveals the trends and features of the current state of financing the foreign countries’ transition to a new «green» economic growth model. To summarize the contemporary experience of countries’ integration into public administration practice the approaches and standards in the field of «green» investments financing.The subject of the study is the set of measures implemented by countries to develop sources of finance for «green» economy projects.Tasks: 1) to consider the principal directions of the «green» investments state policy support, its purpose, and the tools used; 2) to identify the market’s role in the «green» economy financing; 3) to clarify the main issues constraining private investments in «green» projects. The countries’ approach to «green» economic growth financing is examined in the present paper by means of common methods of scientific knowledge.There reviewed the arguments justifying the government support for «green» investments. There revealed the problems constraining the market «green» financing development and speculations about their origins. The study concludes that the countries’ economic policies are aimed at improving the existing model’s efficiency, not at the transition to the new «green» economy model. Thus, through the state support tools, there being generated strong signals signifying the creation of favorable market conditions for the functioning of a new economy sector – the sector of «green» technologies.

Do expectations for post-retirement family and government support crowd out pre-retirement savings? Insights from the working-age population in Thailand

2021 ◽  
pp. 1-19
Author(s):  
Nopphol Witvorapong ◽  
Yong Yoon ◽  
Wiraporn Pothisiri
Keyword(s):  
Old Age ◽  
Filial Piety ◽  
Government Support ◽  
Financial Security ◽  
Retirement Savings ◽  
Family Transfers ◽  
Retirement Expectations ◽  
Working Age ◽  
Nationally Representative ◽  
The Government

Abstract Based on nationally representative data (N = 8,901), this study investigates the extent to which expectations for intra-family transfers and government assistance in old age impact the probability of saving for retirement among working-age individuals in Thailand. Results show that expectations for financial non-self-reliance and expectations that family support would constitute the most important source of old-age financial security reduce the probability that working-age individuals would save for retirement. Expectations for government support have no impact on average. Given that filial piety is weakening in Thailand, this study suggests that the government encourage pre-retirement savings more strongly.

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