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Global Distortions to Agricultural Markets: New Indicators of Trade and Welfare Impacts, 1955 to 2007

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Author Info

  • Peter J. Lloyd

    ()
    (University of Melbourne)

  • Johanna L. Croser

    ()
    (University of Adelaide)

  • Kym Anderson

    ()
    (School of Economics, University of Adelaide)

Abstract

Despite recent reforms, world agricultural markets remain highly distorted by government policies. Traditional indicators of those price distortions can be poor guides to the policies? economic effects. Recent theoretical literature provides indicators of trade and welfare-reducing effects of price and trade policies which this paper builds on to develop more-satisfactory indexes. The authors exploit a new Agricultural Distortion database to generate estimates of them for developing and high-income countries over the past half century. These better approximations of the trade and welfare effects of sector policies are generated without a formal model of global markets or even price elasticity estimates.

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File URL: http://www.economics.adelaide.edu.au/research/papers/doc/wp2009-13.pdf
File Function: First version, 2009
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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 2009-13.

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Length: 44 pages
Date of creation: 2009
Date of revision:
Handle: RePEc:adl:wpaper:2009-13

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Keywords: Distorted incentives; agricultural and trade policies; trade restrictiveness index;

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References

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  1. Anderson, Kym & Kurzweil, Marianne & Martin, Will & Sandri, Damiano & Valenzuela, Ernesto, 2008. "Measuring distortions to agricultural incentives, revisited," Policy Research Working Paper Series 4612, The World Bank.
  2. Kee, Hiau Looi & Nicita, Alessandro & Olarreaga, Marcelo, 2004. "Import Demand Elasticities and Trade Distortions," CEPR Discussion Papers 4669, C.E.P.R. Discussion Papers.
  3. Anderson, Kym & Croser, Johanna L. & Lloyd, Peter J, 2009. "How Do Agricultural Policy Restrictions to Global Trade and Welfare Differ Across Commodities?," CEPR Discussion Papers 7230, C.E.P.R. Discussion Papers.
  4. Feenstra, R.C., 1995. "Estimating the Effects of Trade Policy," Department of Economics 95-10, California Davis - Department of Economics.
  5. Anderson, Kym & Martin, William J., 2007. "Distortions to Agricultural Incentives in Asia," Agricultural Distortions Working Paper 48557, World Bank.
  6. Kee, Hiau Looi & Nicita, Alessandro & Olarreaga, Marcelo, 2006. "Estimating Trade Restrictiveness Indices," CEPR Discussion Papers 5576, C.E.P.R. Discussion Papers.
  7. Anderson, James E. & Bannister, Geoffrey, 1992. "The trade restrictiveness index : an application to Mexican agriculture," Policy Research Working Paper Series 874, The World Bank.
  8. MacLaren, Donald & Lloyd, Peter J., 2008. "Measuring assistance to the agricultural industry in Australia using a Production Assistance Index," 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia 6033, Australian Agricultural and Resource Economics Society.
  9. Valenzuela, Ernesto & Wong, Sara & Sandri, Damiano, 2007. "Distortions to Agricultural Incentives in Ecuador," Agricultural Distortions Working Paper 48394, World Bank.
  10. 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, December.
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Citations

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Cited by:
  1. Johanna Croser & Peter J. Lloyd & Kym Anderson, 2010. "How Do Agricultural Policy Restrictions to Global Trade and Welfare Differ Across Commodities?," Centre for International Economic Studies Working Papers 2010-06, University of Adelaide, Centre for International Economic Studies.
  2. 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.
  3. Anderson, Kym, 2009. "Political Economy of Distortions to Agricultural Incentives: Introduction and Summary," Agricultural Distortions Working Paper 50306, World Bank.
  4. Anderson, Kym & Croser, Johanna L. & Sandri, Damiano & Valenzuela, Ernesto, 2009. "Agricultural Distortion Patterns Since the 1950s: What Needs Explaining?," Agricultural Distortions Working Paper 50305, World Bank.
  5. Croser, Johanna & Anderson, Kym, 2011. "Changing contributions of different agricultural policy instruments to global reductions in trade and welfare," World Trade Review, Cambridge University Press, vol. 10(03), pages 297-323, July.
  6. Cletus C. Coughlin, 2010. "Measuring international trade policy: a primer on trade restrictiveness indices," Review, Federal Reserve Bank of St. Louis, issue Sep, pages 381-394.
  7. Anderson, Kym, 2010. "Krueger/Schiff/Valdes revisited : agricultural price and trade policy reform in developing countries since 1960," Policy Research Working Paper Series 5165, The World Bank.

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