The purposes of this paper are (1) to examine whether the Korean agriculture has been indeed under the situation of 「Reverse-Schere」and if so, (2) how to interprete this situation. (1) The findings may be summarized as fallows : Yearly price ind...
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다국어 초록 (Multilingual Abstract)
The purposes of this paper are (1) to examine whether the Korean agriculture has been indeed under the situation of 「Reverse-Schere」and if so, (2) how to interprete this situation. (1) The findings may be summarized as fallows : Yearly price ind...
The purposes of this paper are (1) to examine whether the Korean agriculture has been indeed under the situation of 「Reverse-Schere」and if so, (2) how to interprete this situation.
(1) The findings may be summarized as fallows :
Yearly price indexes for Grain Only were higher than of Grain Excluded. During the eight years of 1955-1962, only one year's price index for Grain Only was lower than that of Grain Excluded. Therefore, if one draws his conclusion on the basis of yearly data only,he may reach a misleading conclusion that the price formation of farm products in Korea was under the situation of 「Reverse-Schere」.
(2) However, agricultural situation is somewhat different. Korean agriculture is in the disadvantageous conditions in the harvest time, i.e., seasonal average(Nov. Mar.) shows that the price index of Grain Excluded is higher than that of Grain Only by 6.5 percent, while the annual average index shows that the index of Grain Only is higher than that of Grain Excluded by 7.1 percent.
Accordingly,it may be concluded that Korean agriulture was in the deflational conditions during the harvest season but inflational conditions during the off-season throughout the year.
(3) In spite of this, the farmers sell out most of their products in the harvest time, i.e., from November to March of the next year. This is called the 「Phenomena of Destitutional Sell-Out of Farm Products」.
(4) In comparing the price of rice with that of ammonium sulphate, the former was formulated in the destitutional conditions, except for a few years, during the past twenty years.
(5) Also, the average rate of rice price to that of ammonium sulphate was remained at lower level, reaching to 0.83 in the past two decades of 1946 to 1965. Therefore, it may be inferred that the purchasing power of agricultural products was lower than that of other commodities.
(6) The same thing may be said from discussion on the relative prices of rice. During past two decades, the relative prices of rice were not improved but relatively decreased as compared with that of none-farm products.
(7) According to the above analysis on the purchasing power of farm products, Korean agriculture has not been in the favorable conditions as compared with other none-farm commodities. In other words, Korean agriclture has been in the disadvantageous conditions, especially in the havest season of the year.
(8) It may be concluded that farm prices were formulated under the destitutional circumstances in which the purchasing power of farm products was remaining at the lower level as compared with none-farm products. In short, the price formation of farm products has been under the 「Phenomena of Schere」, especially under the 「Phenomena of Seasosnal-Schere」in the harvest season.