Tariff and Tariff Rate Quota Liberalization in the South African Livestock Industry: Approaches to Welfare Measurement
AbstractThe liberalization of the agricultural sector and phasing out of past protection mechanisms in South Africa saw the introduction of a process of tariff reform. Furthermore, a system of tariff rate quotas was introduced in compliance with WTO regulations. This study uses a partial equilibrium comparative static model to measure the welfare effects of further liberalization in the livestock industry of South Africa, particularly in meat products using four policy scenarios. The traditional method of welfare analyses using the CS and PS was applied, while the EV was used to integrate a well-behaved objective function. Although the CS and PS could have over-estimated welfare due to the fact that the demand system used in this study is non-linear, they still gave useful information sufficient to compare the impact of trade liberalization on consumers and producers of livestock products. Furthermore, the EV explains the income change necessary to attain the welfare level resulting from trade liberalization given the current prices. When expressed as a percentage of the real gross national income and real disposable income, the values are quite marginal. The results from both methods of welfare measurement suggest that it is worth considering the effects on producers if further trade liberalization is envisaged in the South African livestock industry.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Agricultural Economics Association of South Africa (AEASA) in its journal Agrekon.
Volume (Year): 46 (2007)
Issue (Month): 1 (March)
International Relations/Trade; Livestock Production/Industries;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- McDougall, Robert, 2000.
"A New Regional Household Demand System for GTAP,"
GTAP Working Papers
404, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
- Abbott, Philip C. & Morse, B. Adair, 2000. "Tariff Rate Quota Implementation And Administration By Developing Countries," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 29(1), April.
- Abbott, Philip C. & Paarlberg, Philip L., 1998. "Tariff rate quotas: structural and stability impacts in growing markets," Agricultural Economics, Blackwell, vol. 19(3), pages 257-267, December.
- Huff, Karen & Thomas W. Hertel, 2001. "Decomposing Welfare Changes in GTAP," GTAP Technical Papers 308, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
- Taljaard, Pieter R., 2003. "Econometric Estimation Of The Demand For Meat In South Africa," Master's Degree Theses 28066, University of the Free State, Department of Agricultural Economics.
- Oyewumi, Olubukola Ayodeju, 2005. "Modeling tariff rate quotas in the South African livestock industry," Master's Degree Theses 28064, University of the Free State, Department of Agricultural Economics.
- Alan Matthews & Cathie Laroche Dupraz, 2001. "Agricultural Tariff Rate Quotas as a Developement Instrument," Economie Internationale, CEPII research center, issue 87, pages 89-106.
- Oyewumi, Olubukola Ayodeju & Jooste, Andre & van Schalkwyk, Herman D. & Britz, Wolfgang, 2006. "Implications of Tariff Rate Quotas Liberalization in the South African Livestock Industry," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25469, International Association of Agricultural Economists.
- Peter Walkenhorst & Nora Dihel, 2003. "Tariff Bindings, Unused Protection and Agricultural Trade Liberalisation," OECD Economic Studies, OECD Publishing, vol. 2003(1), pages 231-249.
- Oyewumi, Olubukola Ayodeju & Jooste, Andre & Britz, Wolfgang & van Schalkwyk, Herman D., 2008. "Trade Liberalization in the South African Livestock Industry: implications for rural development," 2007 Second International Conference, August 20-22, 2007, Accra, Ghana 51997, African Association of Agricultural Economists (AAAE).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.