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Redistribution And Free Trade In Agriculture: Are They Complementary?

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  • Abhirup Sarkar

Abstract

The purpose of the paper is to look at the welfare effects of trade in agricultural goods in a less developed country where the agricultural market is controlled by a handful of large farmers. It is shown that the success of trade reform depends on the distribution of output between large and small farmers and the success of land reform leading to redistribution from the large to the small farmers depends on trade reform. In other words, if undertaken in isolation, each reform might lead to a fall in welfare, but if jointly undertaken, they will lead to an increase in welfare. Thus the two reforms are complementary.

Suggested Citation

  • Abhirup Sarkar, 2008. "Redistribution And Free Trade In Agriculture: Are They Complementary?," Metroeconomica, Wiley Blackwell, vol. 59(2), pages 212-237, May.
    • Handle: RePEc:bla:metroe:v:59:y:2008:i:2:p:212-237
    DOI: 10.1111/j.1467-999X.2007.00301.x
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    References listed on IDEAS

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    1. Markusen, James R. & Melvin, James R. & Maskus, Keith E. & Kaempfer, William, 1995. "International trade: theory and evidence," MPRA Paper 21989, University Library of Munich, Germany.
    2. James R. MARKUSEN, 2021. "Trade And The Gains From Trade With Imperfect Competition," World Scientific Book Chapters, in: BROADENING TRADE THEORY Incorporating Market Realities into Traditional Models, chapter 14, pages 303-323, World Scientific Publishing Co. Pte. Ltd..
    3. Sarkar, Abhirup, 1993. "On the formation of agricultural prices," Journal of Development Economics, Elsevier, vol. 41(1), pages 1-17, June.
    4. Raghbendra Jha & Hari K. Nagarajan & Subbarayan Prasanna, 2005. "Land Fragmentation and its Implications for Productivity: Evidence from Southern India," ASARC Working Papers 2005-01, The Australian National University, Australia South Asia Research Centre.
    5. Abhijit V. Banerjee & Paul J. Gertler & Maitreesh Ghatak, 2002. "Empowerment and Efficiency: Tenancy Reform in West Bengal," Journal of Political Economy, University of Chicago Press, vol. 110(2), pages 239-280, April.
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