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Agricultural Trade Reform and Poverty Reduction in Developing Countries

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  • Kym Anderson

    ()
    (School of Economics, University of Adelaide, Australia)

Abstract

The author offers an economic assessment of the opportunities and challenges provided by the World Trade Organization's Doha Development Agenda, particularly through agricultural trade liberalization, for low-income countries seeking to trade their way out of poverty. After discussing links between poverty, economic growth, and trade, he reports modeling results showing that farm product markets remain the most costly of all goods market distortions in world trade. The author focuses on what such reform might mean for developing countries both with and without their involvement in the multilateral trade negotiations. What becomes clear is that if those countries want to maximize their benefits from the Doha round, they need also to free up their own domestic product and factor markets so their farmers are better able to take advantage of new market opportunities abroad. The author also addresses other concerns of low-income countries about farm trade reform: whether there would be losses associated with tariff preference erosion, whether food-importing countries would suffer from higher food prices in international markets, whether China's WTO accession will provide an example of trade reform aggravating poverty by way of cuts in prices received by Chinese farmers, and the impact on food security and poverty alleviation.

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Bibliographic Info

Paper provided by University of Adelaide, Centre for International Economic Studies in its series Centre for International Economic Studies Working Papers with number 2002-34.

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Length: 29 pages
Date of creation: Nov 2002
Date of revision:
Handle: RePEc:adl:cieswp:2002-34

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  1. Hoekman, Bernard & Ng, Francis & Olarreaga, Marcelo, 2001. "Eliminating excessive tariffs on exports of least developed countries," Policy Research Working Paper Series 2604, The World Bank.
  2. Kym Anderson & Lee Ann Jacskon, 2004. "Standards, trade and protection: the case of GMOs," Centre for International Economic Studies Working Papers 2004-11, University of Adelaide, Centre for International Economic Studies.
  3. Hoekman, Bernard & Michalopoulos, Constantine & Schiff, Maurice & Tarr, David, 2001. "Trade policy reform and poverty alleviation," Policy Research Working Paper Series 2733, The World Bank.
  4. Anderson, Kym & Yao, Shunli, 2002. "How Can South Asia and Sub-Saharan Africa Gain from the Next WTO Round," CEPR Discussion Papers 3170, C.E.P.R. Discussion Papers.
  5. Anderson, Kym, 2000. "Agriculture's 'multifunctionality' and the WTO," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(3), September.
  6. Xavier Sala-i-Martin, 2002. "The world distribution of income (estimated from individual country distributions)," Economics Working Papers 615, Department of Economics and Business, Universitat Pompeu Fabra, revised May 2002.
  7. Anderson, Kym & Yao, Shunli, 2002. "China, GMOs and World Trade in Agricultural and Textile Products," CEPR Discussion Papers 3171, C.E.P.R. Discussion Papers.
  8. Grant E. Issac & William A. Kerr, 2003. "Genetically Modified Organisms and Trade Rules: Identifying Important Challenges for the WTO," The World Economy, Wiley Blackwell, vol. 26(1), pages 29-42, January.
  9. L. Alan Winters & Terrie L. Walmsley & Zhen Kun Wang & Roman Grynberg, 2003. "Liberalising Temporary Movement of Natural Persons: An Agenda for the Development Round," The World Economy, Wiley Blackwell, vol. 26(8), pages 1137-1161, 08.
  10. Martin, W. & Winters, L.A., 1995. "The Uruguay Round and the Developing Countries," World Bank - Discussion Papers 307, World Bank.
  11. Elena Ianchovichina & Will Martin, 2004. "Impacts of China's Accession to the World Trade Organization," World Bank Economic Review, World Bank Group, vol. 18(1), pages 3-27.
  12. K. Anderson & R. Tyers, 1993. "More On Welfare Gains To Developing Countries From Liberalizing World Food Trade," Journal of Agricultural Economics, Wiley Blackwell, vol. 44(2), pages 189-204.
  13. Dollar, David & Kraay, Aart, 2001. "Growth is good for the poor," Policy Research Working Paper Series 2587, The World Bank.
  14. L. Alan Winters, 2002. "Trade Liberalisation and Poverty: What are the Links?," The World Economy, Wiley Blackwell, vol. 25(9), pages 1339-1367, 09.
  15. Anderson, Kym & Strutt, Anna, 1999. "Impact Of East Asia’s Growth Interruption and Policy Responses: The Case Of Indonesia," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 125027, Australian Agricultural and Resource Economics Society.
  16. Hazell, P. B. R. & Haddad, Lawrence James, 2001. "Agricultural research and poverty reduction:," 2020 vision discussion papers 34, International Food Policy Research Institute (IFPRI).
  17. Ianchovichina, Elena & Mattoo, Aaditya & Olarreaga, Marcelo, 2001. "Unrestricted market access for Sub-Saharan Africa - How much is it worth and who pays?," Policy Research Working Paper Series 2595, The World Bank.
  18. Christopher L. Gilbert & Panos Varangis, 2003. "Globalization and International Commodity Trade with Specific Reference to the West African Cocoa Producers," NBER Working Papers 9668, National Bureau of Economic Research, Inc.
  19. Ruffin, Roy & Jones, Ronald, 1977. "Protection and real wages: The neoclassical ambiguity," Journal of Economic Theory, Elsevier, vol. 14(2), pages 337-348, April.
  20. Tyers,Rod & Anderson,Kym, 2011. "Disarray in World Food Markets," Cambridge Books, Cambridge University Press, number 9780521172318, April.
  21. Lloyd, Peter, 2000. "Generalizing the Stolper-Samuelson Theorem: A Tale of Two Matrices," Review of International Economics, Wiley Blackwell, vol. 8(4), pages 597-613, November.
  22. 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.
  23. Diao, Xinshen & Somwaru, Agapi & Roe, Terry L., 2001. "A Global Analysis Of Agricultural Trade Reform In Wto Member Countries," Bulletins 12984, University of Minnesota, Economic Development Center.
  24. Martin, Will & Mitra, Devashish, 2001. "Productivity Growth and Convergence in Agriculture versus Manufacturing," Economic Development and Cultural Change, University of Chicago Press, vol. 49(2), pages 403-22, January.
  25. Beghin, John C. & Roland-Holst, David & Van der Mensbrugghe, Dominique, 2002. "How Will Agricultural Trade Reforms in High-Income Countries Affect the Trading Relationships of Developing Countries?," Staff General Research Papers 10665, Iowa State University, Department of Economics.
  26. Shaohua Chen & Martin Ravallion, 2004. "Welfare Impacts of China's Accession to the World Trade Organization," World Bank Economic Review, World Bank Group, vol. 18(1), pages 29-57.
  27. Anderson, Kym & Hoekman, Bernard, 1999. "Developing Country Agriculture and the New Trade Agenda," CEPR Discussion Papers 2096, C.E.P.R. Discussion Papers.
  28. Lloyd, P. J., 1974. "A more general theory of price distortions in open economies," Journal of International Economics, Elsevier, vol. 4(4), pages 365-386, November.
  29. Bjornskov, Christian & Lind, Kim Martin, 2002. "Where Do Developing Countries Go After Doha? An analysis of WTO positions and potential alliances," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24915, European Association of Agricultural Economists.
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Citations

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Cited by:
  1. Alexander Schejtman & Julio A. Berdegué, 2006. "El Impacto Social de la Integración Regional en América Latina Rural," IDB Publications 9125, Inter-American Development Bank.
  2. Carlos Felipe Jaramillo & Daniel Lederman & Maurizio Bussolo & David Gould & Andrew Mason, 2006. "Challenges of CAFTA : Maximizing the Benefits for Central America," World Bank Publications, The World Bank, number 7127, October.
  3. Valenzuela, Ernesto & Hertel, Thomas W., 2006. "Poverty Vulnerability and Trade Policy: Are the Likely Impacts Discernable?," 2006 Annual meeting, July 23-26, Long Beach, CA 21397, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  4. Paul Schure & G. Cornelis van Kooten & Yichuan Wang, 2007. "Challenges for Less Developed Countries: Agricultural Policies in the EU and the US," Working Papers 2007-08, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group.

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