Effect of Trade Liberalization in the Short-Grain Japonica Rice Market: A Spatial-Temporal Equilibrium analysis

Serious attention has always been bestowed on the stability of food markets. The government has acted on these issues through intervention on food prices that more or less creates distortion. These have been observed on U.S. and Japan. This paper develops a spatial-temporal equilibrium model for short-grain japonica trade and simulates policy alternatives for free trade and improved trade. It then discusses the results and its implications on the Philippine economy.