Abstract

In Korea, the food self-sufficiency rate is one of the most important political issue. The Korean government puts a large budget into increasing the food self-sufficiency rate every year but the performance of the government's efforts is still controversial. The purpose of this study is to analyze the impact of government fiscal expenditure on the self-sufficiency rate. In this paper, market changes were measured using Equilibrium Displacement Model(EDM). The changes in the self-sufficiency rate and social welfare were also measured using changes in market equilibrium. As a result of the analyses, as government fiscal expenditure increased, the food self-sufficiency rate and social welfare increased, contributing to food security in Korea. Among government fiscal expenditures, increasing proportion of government fiscal expenditure on consumption showed a more positive effect on all markets than increasing proportion of government fiscal expenditure on other types. Therefore, it is necessary to expand policies to increase domestic consumption. The results of this study can be useful to discuss about the more efficient management of government fiscal expenditure for the agricultural sector.

Full Text
Published version (Free)

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call