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Food aid, food policy and the Uruguay round: implications for Bangladesh

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  • Warr, Peter G.
  • Ahammad, Helal

Abstract

The relationship between the effects of food aid and those of the completion of the Uruguay Round of the GATT are studied in this paper. focussing upon the food aid recipient countries, and taking Bangladesh as an illustrative example. It is argued that, among other factors. the magnitudes of these effects depend crucially on the policy environment within the food aid recipient. country itself, particularly the government's policy with respect to commercial food imports. It is shown that when the quantity of Bangladesh's commercial food imports is controlled by the government, the benefits derived from food aid are smaller than when these imports are tariffied - subject to fixed tariff rates. Likewise, the negative effects that the Uruguay Round may be expected to have on Bangladesh will also be larger if commercial food imports are subject to quantitative controls than if they are tariffied. The effects that the Uruguay Round will have on Bangladesh will depend significantly on the way food aid donors respond to the Round. If donors reduce the volumes of food aid in response to increased international food prices resulting from the Round, the losses incurred by Bangladesh will be magnified. But these effects will also depend heavily on whether Bangladesh itself participates in the liberalisations that are central to the Round itself. If it were to participate fully, the negative effects that the Uruguay Round would otherwise have on Bangladesh may be entirely offset by the gains Bangladesh would derive from its own liberalisation.

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Bibliographic Info

Article provided by Blackwell in its journal Agricultural Economics.

Volume (Year): 15 (1997)
Issue (Month): 3 (January)
Pages: 169-185

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Handle: RePEc:eee:agecon:v:15:y:1997:i:3:p:169-185

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Web page: http://www.blackwell-synergy.com/loi/agec

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  1. Nguyen, Trien & Perroni, Carlo & Wigle, Randall, 1993. "An Evaluation of the Draft Final Act of the Uruguay Round," Economic Journal, Royal Economic Society, vol. 103(421), pages 1540-49, November.
  2. Jeffrey J. Schott, 1994. "Uruguay Round: An Assessment," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 64, July.
  3. Warr, Peter G, 1977. "On the Shadow Pricing of Traded Commodities," Journal of Political Economy, University of Chicago Press, vol. 85(4), pages 865-72, August.
  4. Salazar P. Brandao, Antonio & Martin, Will, 1993. "Implications of agricultural trade liberalization for the developing countries," Policy Research Working Paper Series 1116, The World Bank.
  5. Nguyen, T. & Perroni, C. & Wigle, R., 1993. "An Evaluation of the Final Act of the Uruguay Round," Working Papers 93003, Wilfrid Laurier University, Department of Economics.
  6. Stern, Joseph J. & Mallon, Richard D. & Hutcheson, Thomas L., 1988. "Foreign exchange regimes and industrial growth in Bangladesh," World Development, Elsevier, vol. 16(12), pages 1419-1439, December.
  7. Warr, Peter G, 1982. "Shadow Pricing Rules for Non-Traded Commodities," Oxford Economic Papers, Oxford University Press, vol. 34(2), pages 305-25, July.
  8. repec:fth:wilfau:93003 is not listed on IDEAS
  9. Trien Nguyen & Carlo Perroni & Randall Wigle, 1995. "A Uruguay Round Success?," The World Economy, Wiley Blackwell, vol. 18(1), pages 25-30, 01.
  10. Francois, Joseph & McDonald, Brad & Nordström, Håkan, 1994. "The Uruguay Round: A Global General Equilibrium Assessment," CEPR Discussion Papers 1067, C.E.P.R. Discussion Papers.
  11. Imam, K H, 1970. "Export Demand Elasticities for Pakistan's Jute Trade," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 32(1), pages 47-58, February.
  12. Colleen Hamilton & John Whalley, 1995. "Evaluating the Impact of the Uruguay Round Results on Developing Countries," The World Economy, Wiley Blackwell, vol. 18(1), pages 31-49, 01.
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