Welfare Impacts of Agricultural and Non-Agricultural Trade Reforms
AbstractThe variability of protection rates within sectors is frequently particularly high in agriculture relative to non-agriculture. Standard aggregation procedures ignore the variability within sectors, and underweight the importance of highly protected sectors. It therefore seems likely that they underestimate the potential benefits of agricultural trade reform relative to non-agricultural reform. This study examines this question using a new procedure for aggregating trade distortions. It finds that the key impact of using better aggregators is to increase the benefits of both agricultural and non-agricultural reform. It finds that using optimal aggregation procedures increases the measured importance of agricultural trade reform relative to non-agricultural reform from a very high initial level, but only by around two percentage points.
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Bibliographic InfoPaper provided by Agricultural and Applied Economics Association in its series 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania with number 103958.
Date of creation: 2011
Date of revision:
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agricultural trade; nonagricultural trade; trade distortions; tariffs; aggregation; World Trade Organization; WTO; trade reform; Food Security and Poverty; International Relations/Trade; F13; F14; Q13; Q17; Q18;
Find related papers by JEL classification:
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
- Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-05-24 (All new papers)
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