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How Do Agricultural Policy Restrictions to Global Trade and Welfare Differ Across Commodities?

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Author Info

  • Johanna L. Croser

    ()
    (University of Adelaide)

  • Peter J. Lloyd

    ()
    (University of Melbourne)

  • Kym Anderson

    ()
    (School of Economics, University of Adelaide)

Abstract

For decades the worldÂ’s agricultural markets have been highly distorted by national government policies, but very differently for different commodities such that a ranking of weighted average nominal rates of assistance across countries can be misleading as an indicator of the trade or welfare effects of policies affecting global markets. This article develops a new set of more-satisfactory indicators, drawing on the recent literature on trade restrictiveness indexes. It then estimates those two indicators for each of 28 key agricultural commodities from 1960 to 2004, based on a sample of 75 countries that together account for more than three-quarters of the worldÂ’s production of those agricultural commodities.

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File URL: http://www.economics.adelaide.edu.au/research/papers/doc/wp2009-12.pdf
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Bibliographic Info

Paper provided by University of Adelaide, School of Economics in its series School of Economics Working Papers with number 2009-12.

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Length: 44 pages
Date of creation: 2009
Date of revision:
Handle: RePEc:adl:wpaper:2009-12

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Keywords: distorted commodity markets; agricultural price and trade policies; trade restrictiveness index;

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References

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  1. Anderson, Kym & Croser, Johanna L. & Lloyd, Peter J, 2009. "Global Distortions to Agricultural Markets: New Indicators of Trade and Welfare Impacts, 1955 to 2007," CEPR Discussion Papers 7160, C.E.P.R. Discussion Papers.
  2. Kee, Hiau Looi & Nicita, Alessandro & Olarreaga, Marcelo, 2006. "Estimating trade restrictiveness indices," Policy Research Working Paper Series 3840, The World Bank.
  3. Hiau Looi Kee & Alessandro Nicita & Marcelo Olarreaga, 2008. "Import Demand Elasticities and Trade Distortions," The Review of Economics and Statistics, MIT Press, vol. 90(4), pages 666-682, November.
  4. Anderson, Kym & Kurzweil, Marianne & Martin, Will & Sandri, Damiano & Valenzuela, Ernesto, 2008. "Measuring Distortions to Agricultural Incentives, Revisited," CEPR Discussion Papers 6924, C.E.P.R. Discussion Papers.
  5. Anderson, Kym & Martin, William J., 2007. "Distortions to Agricultural Incentives in Asia," Agricultural Distortions Working Paper 48557, World Bank.
  6. Feenstra, R.C., 1995. "Estimating the Effects of Trade Policy," Department of Economics 95-10, California Davis - Department of Economics.
  7. James E. Anderson & J. Peter Neary, 2005. "Measuring the Restrictiveness of International Trade Policy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262012200, January.
  8. Valenzuela, Ernesto & Wong, Sara & Sandri, Damiano, 2007. "Distortions to Agricultural Incentives in Ecuador," Agricultural Distortions Working Paper 48394, World Bank.
  9. Valdés, Alberto & Zietz, Joachim A., 1980. "Agricultural protection in OECD countries: its cost to less-developed countries," Research reports 21, International Food Policy Research Institute (IFPRI).
  10. Anderson, James E. & Bannister, Geoffrey, 1992. "The trade restrictiveness index : an application to Mexican agriculture," Policy Research Working Paper Series 874, The World Bank.
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Citations

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Cited by:
  1. Lloyd, Peter J. & Croser, Johanna L. & Anderson, Kym, 2009. "Global distortions to agricultural markets : new indicators of trade and welfare impacts, 1955 to 2007," Policy Research Working Paper Series 4865, The World Bank.
  2. Anderson, Kym & Croser, Johanna, 2010. "How Much Do Agricultural Policies Restrict Trade? Comparing Trade Restrictiveness Indexes," World Bank - Economic Premise, The World Bank, issue 4, pages 1-7, March.
  3. Kym Anderson & Will Martin & Dominique van der Mensbrugghe, 2012. "Estimating Effects of Price-distorting Policies Using Alternative Distortions Databases," Departmental Working Papers 2012-09, The Australian National University, Arndt-Corden Department of Economics.
  4. Anderson, Kym & Croser, Johanna, 2010. "Novel indicators of the trade and welfare effects of agricultural distortions in OECD countries," Policy Research Working Paper Series 5404, The World Bank.
  5. Anderson, Kym, 2009. "Political Economy of Distortions to Agricultural Incentives: Introduction and Summary," Agricultural Distortions Working Paper 50306, World Bank.

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