The book assesses the effects of trade policies on farmer assistance in the agriculture sectors of selected countries in South and South East Asia, highlighting the historical background and context of the trend of agricultural productivity, share of agriculture and industry in gross domestic product. It provides a useful explanation of the effects of trade-related policy interventions through mapping the dynamic linkages of the trade bias index and subsidy indicators like relative rates of assistance (RRA). The trade bias index uses the nominal rate of assistance (NRA) for the exportable and importable components of the specific agricultural products considering the total monetary value of assistance weighted by the share of the sector in gross domestic product. Gross value of products has been estimated by considering farm gate prices. Such a valuation might not, however, fully depict the reality of many South Asian countries, as it will not reflect the existence of mark-ups arising from the price inflating behaviour of various intermediaries in the value chain of production. A rise in the NRA in the exportable component of an agricultural sector might not necessarily mean a larger production and trading of the product due to subsidy leakages arising from inappropriate functioning of the institutions dealing with subsidy targeting and its effective implementation. Domestic factors like export taxes, monthly release mechanisms, state and centre driven pricing regimes for agricultural commodities would also affect the domestic production and exports of agricultural products. One could say that Trade Bias Index and RRA provide indicative associations between level of protection and trade in the absence of regulatory, institutional and other important domestic and global factors.
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