IDEAS home Printed from https://ideas.repec.org/a/ags/aesjre/242292.html
   My bibliography  Save this article

International Trading Rules and the Market Mechanisms: Changes in the International Market of Agricultural Commodities

Author

Listed:
  • Saito, Katsuhiro

Abstract

The purpose of this paper is to discuss the relation between international trading rules and the market mechanisms. The aim of the GATT/WTO is to promote international trade through market mechanism based on a competitive market structure and to be supported by the fundamental theorem of welfare economics that states a competitive market equilibrium induces the Pareto optimal resource allocation. However, if a market is not competitive or is distorted, it may fail to optimize national welfare through resource allocation. Under the current international trading rules, the Free Trade Agreements and State Trade Enterprises are exceptionally allowed. Trade diversion effects and the market power of the State Trade Enterprises might deteriorate the national welfare. In the long run, it is of utmost importance to remove these distortions. When the welfare change in domestic policies harmonized under the international trading rules is evaluated in the short and medium terms, it is necessary to consider the market distortions as well as the appropriate market structure. Since there are a few econometric studies that identify the international market structure, it is valuable to accumulate the empirical studies regarding international agricultural markets.

Suggested Citation

  • Saito, Katsuhiro, 2013. "International Trading Rules and the Market Mechanisms: Changes in the International Market of Agricultural Commodities," Journal of Rural Economics, Agricultural Economics Society of Japan, vol. 85(2), pages 1-13, September.
    • Handle: RePEc:ags:aesjre:242292
    DOI: 10.22004/ag.econ.242292
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/242292/files/Saito-13.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.242292?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Saito, Katsuhiro, 2021. "Toward a Realization of Food Security from a Viewpoint of Agricultural Multifunctionality," Japanese Journal of Agricultural Economics (formerly Japanese Journal of Rural Economics), Agricultural Economics Society of Japan (AESJ), vol. 23.

    More about this item

    Keywords

    International Relations/Trade;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aesjre:242292. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aesjjea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.