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Article
Impacts of Liberalizing the Japanese Pork Market
Journal of Agricultural and Resource Economics
  • Thomas I. Wahl, Washington State University
  • Dermot J. Hayes, Iowa State University
  • S. R. Johnson, Iowa State University
Document Type
Article
Publication Date
1-1-1992
Abstract

The Japanese pork market is protected by a complex set of restrictions, including a variable levy and an import tariff. The combination of these policies distorts the quantity, price, and form of Japanese pork imports. An important issue relevant to the liberalization of the Japanese pork market is the accurate measurement of the price wedge between Japanese and world pork prices. The analysis indicates that the tariff equivalent of the price wedge over the 1986-88 period was 44%. If the tariff equivalent of the price wedge is reduced over a ten-year period, Japanese pork imports are projected to increase by over 39% initially and by over 215% compared to baseline projections by the year 2000. Producer welfare can be maintained by a deficiency payment scheme. A less costly alternative is an industry buffer scheme, which maintains the level of the pork industry for two years and then implements a declining deficiency payment scheme that limits the decrease in production levels to 5% per year.

Comments

This article is from Journal of Agricultural and Resource Economics 17, no. 1 (1992): 121–137.

Copyright Owner
Western Agricultural Economics Association
Language
en
Date Available
April 1, 2013
File Format
application/pdf
Citation Information
Thomas I. Wahl, Dermot J. Hayes and S. R. Johnson. "Impacts of Liberalizing the Japanese Pork Market" Journal of Agricultural and Resource Economics Vol. 17 Iss. 1 (1992) p. 121 - 137
Available at: http://works.bepress.com/dermot_hayes/16/