Agricultural policy and poverty in Tunisian rural areas: an empirical analysis using agricultural prices and investment
New Medit, vol 11, n.4, (December 2012), pp. 2-6
Jel classification: Q12, Q18
The aim of the study is to analyse the impact of a reduction in investment in the agricultural sector and the exchange terms degradation on the farmer’s situation from the standpoint of income and standard of living. In order to examine the relationship between the degradation of exchange terms, a decline in public investment and the slow increase in farmer’s income, a time series data sample design was adopted on the basis of an on-going household consumption and budget survey series initiated in 1975. The variables used in both the descriptive and analytical analyses are: the price of primary inputs and agricultural products, the public investment in the agricultural sector and the evolution of farmer income. Results from descriptive analysis highlight a degradation of the farmer’s purchasing power and an unfavourable distribution of growth to employees in this sector. Econometric analysis shows a structural change in the data between the structural adjustment period (mid-1980s until mid- 1990s) and the post-adjustment period, with an acceleration of the degradation of exchange terms during the second period. Finally, a global analysis of the evolution of farmer’s income, according to the output/input price ratios, showed a decrease in farmer’s income, in particular the producers of traditional products.
agricultural farms, agricultural prices, income, agricultural investment, econometric model, Tunisia