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Deregulation as (Welfare Reducing) Trade Reform: the Case of the Australian Wheat Board

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  • Steve McCorriston
  • Donald MacLaren

Abstract

State trading enterprises are distinguishable from private, commercial firms by the nature of their exclusive rights and objectives. Deregulation of the Australian Wheat Board is used to illustrate the effects of these rights and objectives on trade and welfare. Theoretical models are specified and the effects measured through calibrated, partial equilibrium models. It was found that the successive deregulations of the Australian Wheat Board caused it to switch from being equivalent to an export subsidy to, today, being equivalent to an export tax. At the same time, deregulation has not necessarily been welfare enhancing. Copyright 2007, Oxford University Press.

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File URL: http://hdl.handle.net/10.1111/j.1467-8276.2007.00985.x
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Bibliographic Info

Article provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 89 (2007)
Issue (Month): 3 ()
Pages: 637-650

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Handle: RePEc:oup:ajagec:v:89:y:2007:i:3:p:637-650

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Cited by:
  1. Soregaroli, Claudio & Sckokai, Paolo, 2011. "Modelling Agricultural Commodity Markets under Imperfect Competition," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 116012, European Association of Agricultural Economists.
  2. MacLaren, Donald & McCorriston, Steve, 2007. "An Assessment of the Economic Effects of COFCO," China's Agricultural Trade: Issues and Prospects Symposium, July 2007, Beijing, China 55026, International Agricultural Trade Research Consortium.
  3. Disdier, Anne-Célia & Marette, Stéphan, 2010. "The Combination of Gravity and Welfare Approaches for Evaluating Non-Tariff Measures," CEPREMAP Working Papers (Docweb) 1004, CEPREMAP.
  4. Suphanit Piyapromdee & Russell Hillberry & Donald MacLaren, 2008. "'Fair Trade' Coffee and the Mitigation of Local Oligopsony Power," Department of Economics - Working Papers Series 1057, The University of Melbourne.

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