Download Parameters Evaluating the Impact of Agricultural Policy on the

Parameters Evaluating the Impact of Agricultural Policy on the Consumer
and Producer Income
PhD Univ. Professor Marin Dinu
PhD Univ. Lecturer Cristian Socol
Academy of Economic Studies, Bucharest
This study provides a methodological analysis evaluating the
degree of protection in agricultural sector. Nominal Protection Rate
(NPC), Effective Protection Rate (EPC) and Internal Resources Cost
(IRC) are the main indicators for evaluating the market oriented to
agricultural policy.
A substantial reform concerning the agriculture, not only in
transition country should include a reduction of the protectionism and a
growth of the orientation towards the market. The protection of the
market measures the degree of isolation between the internal markets and
the international ones. The orientation towards the market is a very
comprehensive concept and refers to a bigger degree from reception of
the market signals concerning the production, consumption and trade (as
compared to the situation of policy involvement). The market protection
can be measured through the the producers prices and those paid by the
consumers, at the farm gate, compared to the prices on the international
market.