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Argentina : country case study of agricultural prices and subsidies (English)

This study examines pricing policy in Argentina from 1950-1975 for seven major agricultural products. Based on estimates of coefficients of nominal and effective protection, price and tax discrimination against producers appears to have declined between the 1950's and the 1960's. This was probably a contributing factor to the improved growth performance of Argentine agriculture in the 1960's, as compared with the previous decade. Estimates of domestic resource costs for grains suggest that, while Argentina has a comparative advantage in grain production, this advantage deteriorated for wheat in 1960-74, but improved in the cases of corn and grain sorghum as a result of recent productivity gains for these two crops. The high taxation to which the grains were subjected during these years implied a massive redistribution of incomes from producers largely to consumers and the Government, with consumers collecting about half of the income transfer and the Government one-third. Argentina's comparative advantage as defined by various estimates of domestic resource costs appears clear-cut in the case of wool but less certain for cattle and cotton.

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Citation

RECA, L.

Argentina : country case study of agricultural prices and subsidies (English). Staff working paper ; no. SWP 386 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/973501468769292951/Argentina-country-case-study-of-agricultural-prices-and-subsidies