Minimum Access of Rice Import

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Other Title
  • コメのミニマム・アクセスの及ぼす経済効果
  • コメ ノ ミニマム アクセス ノ オヨボス ケイザイ コウカ
  • An Economic Effect

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Abstract

In this paper, the economic effects of minimum access on rice import via GATT agricultural agreements are examined with a single country applied general equilibrium model of Japan.The model we construct contains 14 production sectors and 3 factors, and is based on a 1989 Input-Output extension table published by MITI.<br>　Comparative statics are conducted under two scenarios concerning imported rice: milled rice and brown rice.The importance of this study is that it is left to the importer to determine the form of rice importation, milled or brown, i.e., no restriction on the basis.The main results are as follows.First, there is a reduction of prices with respect to labor and the improvement of national welfare when rice is imported regardless of its basis.Furthermore, the welfare improvement and the rate of decrease in cultivated land rent are both greater if the rice import via minimum access is based on brown rice.In addition, the real cultivated land rent with respect to rice producer's price also decreases.This means that the minimum access based on brown rice is preferable from the standpoint of national welfare and contributes to the mobility of cultivated land.It may, however, negatively affect agricultural managers who have to pay for land investments which they have made.<br>　Second, we calculate what amount of cultivated land can be removed in order to maintain the initial welfare level, which is regarded as an alternative measure of the welfare gain.It is about 55,000 (60,000) ha for 4 percent import of milled (brown) rice and 111,000 (127,000) ha for 8 percent.Compared with the actual annual decrease of cultivated land from the Crop Statistics (MAFF), this is by no means a large amount.Third, the activity level reduction in the rice sector is relatively larger on an import basis, while the increase of aggregated activity level in non-agricultural sectors is small in both cases.

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