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The impact of the EU sugar trade reform on poor households in developing countries: A general equilibrium analysis

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  • Gotor, Elisabetta
  • Tsigas, Marinos E.

Abstract

We use a modified version of the applied general equilibrium model GTAP, called GTAPMH, to evaluate the impact of a reduction in the EU's support price for sugar on income distribution of African households. For LDC countries, non-ACP but participant in the EBA initiative a +2% change is indicated in term of income generation across all ten social strata identified within GTAPMH framework, with positive percentage changes in supply prices at household level of endowment commodities, and positive percentage changes in price indices for private household expenditures. The big losers will be those countries that would no longer be able to compete at an international level as a result of the lost preferences.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Policy Modeling.

Volume (Year): 33 (2011)
Issue (Month): 4 (July)
Pages: 568-582

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Handle: RePEc:eee:jpolmo:v:33:y:2011:i:4:p:568-582

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Web page: http://www.elsevier.com/locate/inca/505735

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Keywords: EU sugar regime reform Everything but arms initiative Welfare effects Income distribution ACP countries Poor households;

References

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  1. Devadoss, Stephen & Kropf, Jurgen, 1996. "Impacts of trade liberalizations under the Uruguay round on the world sugar market," Agricultural Economics, Blackwell, vol. 15(2), pages 83-96, November.
  2. John C. Beghin & Barbara El Osta & Jay R. Cherlow & Samarendu Mohanty, 2003. "The Cost Of The U.S. Sugar Program Revisited," Contemporary Economic Policy, Western Economic Association International, vol. 21(1), pages 106-116, 01.
  3. L. Alan Winters & Neil McCulloch & Andrew McKay, 2004. "Trade Liberalization and Poverty: The Evidence So Far," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 72-115, March.
  4. Mitchell, Donald, 2004. "Sugar policies opportunity for change," Policy Research Working Paper Series 3222, The World Bank.
  5. Bureau, Jean-Christophe & Guyomard, Herve & Requillart, Vincent, 2001. "On inefficiencies in the European sugar regime," Journal of Policy Modeling, Elsevier, vol. 23(6), pages 659-667, August.
  6. Won W. Koo, 2002. "Alternative U.S. and EU Sugar Trade Liberalization Policies and their Implications," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 24(2), pages 336-352.
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