Journal: |
Agricultural Economics and Social Science
Zagazig J. Agric. Res., Vol. 47 No. (6) 2020
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Volume: |
Zagazig J. Agric. Res., Vol. 47 No. (6) 2020
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Abstract: |
The research aimed to study the impact of agricultural policy on the wheat crop in Egypt during the period (2000-2017), by applying the partial equilibrium model to identify the effect of the agricultural policies adopted on the net loss of the producer and the consumer, and measure the level of producer and consumer welfare and the change in both government revenue and cash The descriptive and quantitative method was used to analyze data such as averages, percentages, and the regression analysis method. The results showed that there was a statistically significant annual increase in each of total production, imports, consumption and the size of the food gap at a rate of about 183, 276, and 282 thousand tons, respectively, while there was a statistically significant decrease in the self-sufficiency ratio of about 39.1%, and the statistical significance did not prove a decrease. Total production. The application of the partial equilibrium model on the wheat crop revealed that the society’s average net loss on the production side amounted to about LE million 30.3, and on the consumption side, it reached about LE Billion 8.4 during the study period. On the other hand, it was found that the economic welfare of the producers (change in producer surplus) achieved during all the years of the study, at an annual average of about 3693 million pounds. As a result of selling large quantities at high prices as a result of the rise in agricultural price over the world price, which indicates that the economic policies adopted were in favor of the production side of the commodity. In terms of consumer surplus, it was found that an annual average loss of about LE Billion 2.5 was achieved during the study period as a result of purchasing less quantities at higher prices, and consequently, the welfare of wheat consumers decreased. As for government revenue, it was found that a return was achieved during the study period at an annual average of about LE Billion 7.2. The return in government revenue is due to the rise in the domestic price over the international price. With regard to foreign exchange earnings, it was revealed that a loss was achieved during the study period, at an annual average of about LE Billion 16.6. As for the net effect on imports, it was found that society achieved gains during the study period at an annual average of about LE Billion 8.4, and this may be due to the efficient distribution of productive resources at the product level and the rationalization of consumption spending at the consumer level, which reflects the positive effects of implementing the economic liberalization policy.
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