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Universiti Putra (2017)

Economic analysis of pricing policies of meat products in Iraq

Hussein, Sarmad Ali

Titre : Economic analysis of pricing policies of meat products in Iraq

Auteur : Hussein, Sarmad Ali

Université de soutenance : Universiti Putra

Grade : Doctor of Philosophy (PhD) 2017

Résumé partiel
Price policy is a tool used to motivate producers to increase production. It aims to balance the interests of producers and consumers, as well as the government. Demand for meat in Iraq has increased significantly over the years. The livestock sector is suffering from higher prices and an increase in costs. There are two (2) approaches to support which can be output price or input price policies. These policies require considerable funds from the government treasury. This study examines the effects of state intervention in the pricing of meat products (beef and fish) in Iraq for the period 1985-2013. It aims to measure protection coefficients to determine whether support is benefit of producers or consumers. Also to determine multiple effects of the single market model for government policy of output price support and input price support. Methodologies used in this study include annual time series data from 1985 to 2013 which were obtained at the national level which are a whole for prices of beef and fish, production and consumption, input prices and local currency exchange rate. The analysis was based on the use of several mathematical formulas that depended on economic theory so called partial equilibrium framework. Results indicated that the net nominal protection coefficients for beef computed based on the shadow exchange rate were greater than one that means beef producers received motivation except for years 1991, 1992, 1994 and 1996 when consumers were protected. While for fish, the values of the nominal protection coefficient do not clearly show whether producers or consumers benefited more from government intervention policy. Consumers of fish benefited during the periods 1987-1999 and 2011-2013 while producers also benefited during the period covered. The results of multi-effects for the single market model are based on a set of criteria. With respect to the change in government revenue, for beef, it is positive for most of the years, implying that the government earned revenue as a result of the subsidy policy except for the years 1991, 1992, 1994 and 1996. For fish, there is indication of a negative change in government revenue which implies lower revenue for the government for the period 1987-1999 as well as 2011-2013 due to the policy support for fish. For the rest of other years, there was a positive change in government revenue for fish. The computed values of the net economic losses in production and consumption reveal the existence of economic loss in both production and consumption of beef and fish

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