The paper focuses on the effects of the Asian financial crisis on world agriculture with most attention given to North America. The paper is divided into two major sections. The first section describes briefly the nature of the shock in the East Asian economies and the various channels through which the shock has the potential to affect world agriculture. Since these various channels have complicated direct and indirect effects on agriculture, some of which entail the effects of competition for economy-wide resources, a brief analytical treatment of agriculture in the context of the broader economy is also presented. This section provides the background for the parameter adjustments made to the empirical model, the nature of the experiments performed, and the interpretation of the results obtained, all of which are presented in the third section of the paper.
Bibliographical noteFunding Information:
The authors are grateful to John Miranowski, Praveen Dixit, William Liefet, Agapi Somwaru, and the participants of the Global Financial Crisis and Agriculture session of the Allied Social Science Association Meetings, Boston, 7–9 January, 2000. Financial support was provided by the United States Department of Agriculture, Economic Research Service.