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Policy Bias and Agriculture: Partial and General Equilibrium Measures

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Bautista, Romeo M, et al

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Abstract

The paper examines the impact of industrial protection, agricultural export taxes, and overvaluation of the exchange rate on the balance between the agricultural and nonagricultural sectors. Various agricultural terms-of-trade indices are constructed to measure the policy bias against agriculture in a computable general equilibrium (CGE) framework and compare the results with earlier partial equilibrium measures. Our results indicate that the partial equilibrium measures miss much of the action operating through indirect product and factor market linkages, while overstating the strength of the linkages between changes in the exchange rate and prices of traded goods on the agricultural terms of trade. Copyright 2001 by Blackwell Publishing Ltd

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Article provided by Blackwell Publishing in its journal Review of Development Economics.

Volume (Year): 5 (2001)
Issue (Month): 1 (February)
Pages: 89-104
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Handle: RePEc:bla:rdevec:v:5:y:2001:i:1:p:89-104

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  1. Henning Tarp Jensen & Sherman Robinson & Finn Tarp, 2004. "General Equilibrium Measures of Agricultural Policy Bias in Fifteen Developing Countries," Discussion Papers 04-25, University of Copenhagen. Department of Economics. [Downloadable!]
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  2. James Cassing & Saad Nassar & Gamal Siam & Hoda Moussa, 2007. "Distortions to Agricultural Incentives in Egypt," Working Papers 313, University of Pittsburgh, Department of Economics, revised Jul 2008. [Downloadable!]
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  3. Thilo Glebe & Uwe Latacz-Lohmann, 2007. "Agricultural multifunctionality and trade liberalisation," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 82, pages 57-73. [Downloadable!]
  4. Anderson, Kym & Valenzuela, Ernesto, 2006. "Do global trade distortions still harm developing country farmers ?," Policy Research Working Paper Series 3901, The World Bank. [Downloadable!]
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  5. Diaz-Bonilla, Eugenio & Robinson, Sherman & Thomas, Marcelle, 2002. "On boxes, contents, and users," TMD discussion papers 82, International Food Policy Research Institute (IFPRI). [Downloadable!]
  6. Bittencourt, Mauricio, 2003. "Does The Stolper-Samuelson Theorem Hold With Less Trade Distortion?: A Computable General Equilibrium," 2003 Annual meeting, July 27-30, Montreal, Canada 22173, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  7. Anderson, Kym & Martin, Will & van der Mensbrugghe, Dominique, 2005. "Distortions to world trade: impacts on agricultural markets and farm incomes," Policy Research Working Paper Series 3736, The World Bank. [Downloadable!]
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  8. Anderson, Kym & Valenzuela, Ernesto & Van Der Mensbrugghe, Dominique, 2009. "Welfare and Poverty Effects of Global Agricultural and Trade Policies Using the Linkage Model," Agricultural Distortions Working Paper 52785, World Bank. [Downloadable!]
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