Abstract
ABSTRACTGovernment in Southeast Asia plays a crucial role in the rice sector. It intervenes in rice production in order to increase the country’s production and to achieve self-sufficiency in rice production. How does the government’s policy affect rice production? This paper examines the policy effect of government assistance on rice production in Southeast Asian countries and it argues that the less likely government is to impose tax barriers on the rice sector and to control prices, the more likely is rice production to increase. Studying the relation between rice policy and rice production in Southeast Asia, the paper finds that a decline in the state’s tax intervention in the rice sector helps to increase rice production in both rice exporting and importing countries. In addition, the results show that political liberalization leads to an increase in rice production. Therefore, a reduction in tax barriers and the abandonment of the state’s price control are state policies that encourage rice production in the long run.
Highlights
Government policy has an influence on farmers’ rice production, and such policy can qualitatively affect the farmers’ production in that the government provides production technology and knowledge for farmers so that they can improve their productivity in the long run
How does the government’s policy or intervention affect farmers’ rice production? Does the government’s taxation discourage farmers from increasing their productivity? Does the government’s subsidization contribute to growth of the farmers’ productivity? Scholars have examined the relation between government intervention and the agricultural market, especially in developing countries (Bates 1981; Kasara 2007; Anderson 2009a; Laiprakobsup 2013, 2014a), and their studies usually examine the effect of government policy on the agricultural export market in that the abandonment of taxation contributes to growth in agricultural exports or trade liberalization
This paper examines the relation between the government’s policy and the farmers’ rice production in rice-exporting and riceimporting countries in Southeast Asia, and it argues that the abandonment of taxation by the government contributes to an increase in rice production in that rice farmers are not imposed with taxes on inputs or production equipment, and they are not controlled by the government’s price program
Summary
Government policy has an influence on farmers’ rice production, and such policy can qualitatively affect the farmers’ production in that the government provides production technology and knowledge for farmers so that they can improve their productivity in the long run. This paper examines the relation between the government’s policy and the farmers’ rice production in rice-exporting and riceimporting countries in Southeast Asia, and it argues that the abandonment of taxation by the government contributes to an increase in rice production in that rice farmers are not imposed with taxes on inputs or production equipment, and they are not controlled by the government’s price program. They have incentive to increase their productivity since their production costs can be reduced. LAIPRAKOBSUP models while the sixth section discusses and concludes the paper
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