Price liberalization in the agri food economy in the transition economies is likely to slip into a trap: food prices rocket up, consumption declines, but food supply does not catch up and even contracts. However, during the transition period following the 1989 price liberalization, the Polish hog-pork sector succeeded in avoiding this trap. By conducting market structure and econometric analysis, this article looks for the reasons for this success. In the Polish hog-pork sector the restructuring of state-owned enterprises and the emergence of private firms introduced an effective price transmission mechanism between the processing-retailing and farm levels. This mechanism allowed farm supply to respond to changed demand and to take advantage of increased retail prices. Such a relatively efficient marketing system was made possible by a relatively stable macroeconomic environment and limited government intervention.
Detalhes
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Autor
Wei, Aiming; Guba, Waldemar; Burcroff II, Richar
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Data do documento
1998/01/01
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TIpo de documento
Artigo de revista
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No. do relatório
77262
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Nº do volume
1
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Total Volume(s)
1
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País
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Região
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Data de divulgação
2013/05/15
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Disclosure Status
Disclosed
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Nome do documento
Why has Poland avoided the price liberalization trap? : the case of the hog-pork sector
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Palavras-chave
price liberalization;price margin;ownership structure;macroeconomic risk;farmer;retail price;private farms;marketing system;consumer price index;wholesale market;transition economy;Transition economies;real per capita income;State and Collective Farms;price transmission;meat processing plants;coefficient of variation;independent variable;marketing cost;impact on price;rate of inflation;volume of procurement;limited government intervention;privatization of state;Agriculture;standard deviation;small private firms;labor and materials;share of state;vegetable and fruit;increase in quantity;meat processing industry;comparative static analysis;degree of specialization;agricultural policy analysis;estimation of equation;economies of scale;demand for meat;competitive market forces;raw agricultural product;fruit and vegetable;food processing industry;gross domestic product;total agricultural production;elimination of subsidy;degree of certainty;data collection procedure;agricultural product price;market level;agricultural land;market player;agricultural process;pork production;food price;farm price;
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