Economic Impacts of the New European Banana Market Regime: The Case of Germany
AbstractThe objectives of this paper are (i) to assess the actual economic implications of the new European banana policy on prices, consumption and trade in Germany within a theoretical and quantitative analysis; (ii) to elaborate the welfare implications of the European banana market policy on the German banana market from the national compared with the EU's point of view. The new European banana market policy led to the introduction of a tariff quota system on the formerly unprotected German banana market. This caused a substantial increase in German import prices for bananas, e.g. in 1994 by 95% compared with the hypothetical situation without trade protection. Further consequences were a strong reduction of import demand and clearly rising import expenditures, by 22% and 53% respectively in 1994. The new banana protection on the German market caused substantial losses in consumer surplus: 1039 mill. DM in 1994, as well as deadweight losses. The size of the deadweight losses was clearly higher from the German than from the EU's point of view. High quota rents of European traders and budgetary gains at the EU level compensated a substantial part of German consumer's welfare losses at the EU level. This is much less the case for Germany, given the allocation of import licences in the European banana trade and the common financial system in the EU. Strong and untargeted redistributive consequences were induced by the new European banana policy even within the EU.
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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Justus-Liebig University Giessen, Department of Statistics and Economics in its journal Journal of Economics and Statistics.
Volume (Year): 218 (1999)
Issue (Month): 1+2 (January)
Contact details of provider:
Postal: Licher Straße 74, 35394 Gießen
Phone: +49 (0)641 99 22 001
Fax: +49 (0)641 99 22 009
Web page: http://wiwi.uni-giessen.de/home/oekonometrie/Jahrbuecher/
More information through EDIRC
Common Agricultural Policy; banana market; European Banana Market Policy; agricultural prices; trade policy; cointegration; price transmission; import demand functions; Germany;
Find related papers by JEL classification:
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
- Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
- C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- de Gorter, Harry & Abbott, Philip C. & Barichello, Richard R. & Boughner, Devry S. & Bureau, Jean-Christophe & Choi, Jung-Sup & Coleman, Jonathan R. & Herrmann, Roland & Kramb, Marc Christopher & Shel, 2001. "Issues In Reforming Tariff-Rate Import Quotas In The Agreement On Agriculture In The Wto," Commissioned Papers 14617, International Agricultural Trade Research Consortium.
- Herrmann, Roland & Kramb, Marc & Mönnich, Christina, 2000. "Tariff rate quotas and the economic impacts of agricultural trade liberalization in the WTO," Discussion Papers 1, Justus Liebig University Giessen, Center for international Development and Environmental Research (ZEU).
- Osório-Peters, Suhita, 1998. "The goals of sustainable development and the reform of the EU banana trade regime: a discussion of different trade instruments," ZEW Discussion Papers 98-31, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Osório-Peters, Suhita, 1998. "Die Reform der EU-Marktordnung für Bananen: Lösungsansätze eines fairen Handels unter Berücksichtigung der Interessen von Kleinproduzenten," ZEW Dokumentationen 98-07, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Winker).
If references are entirely missing, you can add them using this form.