Survey of welfare impacts of elimination of government intervention on maize market

Document Type : Research Paper

Authors

1 Ph.D., Agricultural Economics, University of Shiraz, Iran

2 Professor, Agricultural Economics, University of Shiraz, Iran

Abstract

The main purpose of this study is to determine welfare impacts of trade liberalization on maize market. For this purpose, we used from time series data for the period 1961/2009 and estimated domestic supply, domestic demand and import demand for maize. Results of estimation showed that price elasticity of supply and demand is 0.32 and -0.25, respectively. Then, by means of these elasticities, we measured welfare impacts of this policy. Regarding to available information, observed that imported price of maize is lower than producer and consumer price. Therefore, we expect that by doing trade liberalization policy, producer and consumer welfare decrease and increase, respectively. That result of this study confirms this pretension. Also, on the track of administration of this policy, government expenditure deceases. Finally, results showed that trade liberalization cause to social welfare increases.

Keywords

References

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