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The Economics of Bolivian Self-Sufficiency in Wheat Production*

Published online by Cambridge University Press:  28 April 2015

Enrique Gomez D.
Affiliation:
USAID, Paraguay
B. Delworth Gardner
Affiliation:
Department of Economics, Utah State University
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Extract

The primary purpose of this paper is to provide estimates of the government subsidy that would have to be paid to wheat producers if Bolivia is to reach self-sufficiency in wheat. These estimates are then utilized in a producer's surplus analysis to determine whether or not such a policy would enhance the economic welfare of the country.

Bolivia has a chronic deficit in wheat production. Imports composed about 80 percent of consumption in 1971, the last year of our data series (Table 1). Domestic production in 1971 was roughly the same as 14 years earlier, while imports have steadily increased. A linear regression of imports on time revealed an annual increment of imports of 7,748 metric tons (MT), whereas total annual consumption increased by 8,833 MT. (Thus increases in imports have supplied about 88 percent of the estimated increases in consumption.) Requirements of foreign exchange for wheat purchases have been heavy, especially as Public Law 480 concessional sales have been winding down and Bolivia has had to turn to purely commercial transactions to satisfy her consumption requirements.

Type
Research Article
Copyright
Copyright © Southern Agricultural Economics Association 1976

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Footnotes

*

This paper is based on a section of the first author's dissertation, “Economic Analysis of the Agricultural Sector in Santa Cruz, Bolivia,” written at Utah State University, 1974.

References

[1] Analisis Socio-Economico del Departmento de Santa Cruz de la Sierra (Bolivia). Comision Economica para America Latina, United Nations, Volume IV, April 1972.Google Scholar
[2] Arce, Lucio. Ciclo de Conferencias—Simposium sobre Produccion de Trigo en Bolivia, Instituto National del Trigo, Sociedad de Ingenieros Agronomos de Bolivia, Boletin Tecnico No. 9, June 1970.Google Scholar
[3] Cochrane, Thomas T. “El Potencial Agricola del Uso de la Tierra en Bolivia,” Mission Britanica en Agriculture Tropical, Bolivia, 1973.Google Scholar
[4] Gardner, B. Delworth. The Economics of an Increase in Wheat Production in Bolivia, Utah State University, RDD, USAID, Bolivia, USU Series 13/66, May 1966.Google Scholar
[5] Gibier, John W. The Bolivian Wheat Program, Santa Cruz: A Review and Evaluation, USAID, RDD, USU-Bolivia, USU Series 26/72, July 1972, (mimeographed), Instituto Nacional del Trigo, Boletin Informativo No. 1, July 1972.Google Scholar
[6] Gomez, Enrique, et. al.Estudio del Trigo,” Ministerio de Agricultura Y Ganaderia, Utah State University, USAID, Bolivia, October 1972, Table 43.Google Scholar
[7] Johnson, D. Gale. World Agriculture in Disarray, Trade Policy Research Center, London, 1973, p. 114.CrossRefGoogle Scholar
[8] Krishna, Raj. “Agricultural Price Policy and Economic Development,Agricultural Development and Economic Growth, Southworth, Herman M. and Johnston, Bruce F., eds., New York: Cornell University Press, 1967, pp. 507–07.Google Scholar

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