Trade Liberalization, Part-time Farming, and the Use of Agrochemicals∗
نویسنده
چکیده
This paper investigates the effects of changes in prices and wages, which may be caused by trade liberalization, on the micro behavior of farmers, in particular, on the use of agrochemicals and parttime farming. I demonstrate that a small decrease in the price of an agricultural product decreases the use of agrochemicals if there are no arable land rental transactions. On the other hand, if a change in those transactions is taken into consideration, the price decrease may increase the use of agrochemicals in an rural area. Moreover, a small increase in the local wage decreases the use of agrochemicals in the area.
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