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Agricultural Policy as a Barrier to Global Economic Integration

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  • Kym Anderson

    ()
    (School of Economics, University of Adelaide)

  • Ernesto Valenzuela

    ()
    (School of Economics, University of Adelaide)

Abstract

For decades, trade between countries in agricultural products has been distorted by policies of richer countries favoring their farmers with import barriers and subsidies. Agricultural trade has often also been limited by an anti-agricultural, pro-urban bias in many developing country policies. Both sets of policies have reduced national and global economic welfare. They also have added to inequality and poverty in developing countries, because three-quarters of the worldÂ’s billion poorest people depend on farming for their livelihood. Over the past two decades numerous developing country governments have reduced their sectoral and trade policy distortions, while some high-income countries also have begun reforming their farm protectionist policies. Drawing on results from a new multi-country World Bank research project, this paper summarizes estimates of the extent of those distortions to prices of farm products over the past 5 decades, and of their effect in reducing the integration of the worldÂ’s agricultural markets.

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File URL: http://www.adelaide.edu.au/cies/publications/present/CIES_DP1014.pdf
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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 2010-14.

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Length: 29 pages
Date of creation: May 2010
Date of revision:
Handle: RePEc:adl:cieswp:2010-14

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Keywords: Distorted incentives; agricultural and trade policy reforms; international economic integration;

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