2Professor of Agricultural Economics in shiraz University
3Professor of Economics in Penn State University
In this study, the social welfare impacts of the interaction of Iranian rice import policies and Thai export policies are analyzed using a game theoretic approach in conjunction with econometric supply and demand models. The joint impacts of increasing the world price of rice, resulting from the export policies in Thailand along with changes in tariff rates in Iran, on social welfare are analyzed in the two countries. Because Iran is a small country in terms of the volume of world rice trade its policies do not influence Thai social welfare. Results of this study show that in order to maximize its own social welfare, the government should impose a modest tariff rate of approximately 3%. This is much less than the actual tariff rate applied in recent years, e.g. 19% in 2007.
Beghin, J. C., & Bureau, J. C. (2001). Measurement of sanitary, phytosanitary and technical barriers to trade, A consultants report Prepared for the Food, Agriculture and Fisheries Directorate, OECD.
Bakhshoodeh, M., & Thomson, K. J. (2006). Social welfare effects of removing multiplicity of exchange rates: evidence from rice trade in Iran, Journal of Agricultural Economic, 34, 17-23.
Chen, D., & Ito, S. (1992). Modeling supply response with implicit revenue functions: a policy switching producer for rice, American Journal of Agricultural Economics, 74: 186-196.
FAO database, http://apps.fao.org.
Food and Agricultural Policy Research Institute, http://www.fapri. iastate.edu.
International Monetary Fund (IMF). International Financial Statistics Various issues. Washington DC: Tide stone Technologies.
International Rice Research Institute, http://beta.irri.org.
Lee, D. S., & Kennedy, P. L. (2002). A Game Theoretic Analysis of U.S. Rice Export Policy: The case of Japan and Korea, Presented at the annual meeting of the American Agricultural Economics Association, Long Beach, California, July 28-31.
Najafi, B. (1999). Evaluating Government Policies in Agriculture Sector, the Iranian Ministry of Agriculture (in Persian).
Nicita, A. (2009). The price effect of tariff liberalization: Measuring the impact on household welfare. Journal of Development Economics, 89:19-27.
Nori, K. (2005). Survey of support policies on rice market of Iran, Agriculture Economic and Development Journal, 13 (52): 87-106.
Sloof, R. (1998). Game-Theoretic Models of the Political Influence of Interest Groups, Boston: Kluwer Academic Publishers.
Song, J. H., & Colin, A. C. (1996). Rice Trade Liberalization and Implications for U.S. Policy, American Journal of Agricultural Economics. 78.
Wailes, E. J., Ito, S., & Gail, L. C. (1991). Japan’s Rice Market. Arkansas Agricultural Experiment Station, University of Arkansas-Fayetteville.
Wailes, E. J., Gail, L. C., Eddie, C. C., & James, M. H. (2000). Arkansas Global Rice Model: International Baseline Projections for 2000-2010. Arkansas Global Rice Marketing Program.
Warr, P. G. (2001). General Equilibrium Policy Analysis Thailand, London: Edward Elgar.