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Agricultural Trade Policy Modelling: Insights from a Meta-Analysis of Doha Development Agenda Outcomes

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  • Hess, Sebastian
  • von Cramon-Taubadel, Stephan

Abstract

In a meta-analysis of trade policy models, Hess and von Cramon-Taubadel (2008) use over 5800 simulated welfare effects from 110 studies of potential Doha Development Agenda outcomes to identify characteristics of models, data and policy experiments that influence simulation results. This meta-analysis, which is recapitulated here, produces plausible results and explains a significant proportion of the variation in simulated welfare effects. However, due to insufficient documentation and the complexity of the general and partial equilibrium models in the literature sample, many explanatory variables employed in this analysis are binary. This precludes more detailed analysis of their impacts across models. Therefore, a partial equilibrium model and a single country CGE for Canada are employed to generate synthetic meta-data. Simulation scenarios are based on random combinations of base data, elasticities and tariff changes selected from plausible ranges obtained from the literature sample. The synthetic meta-data has the advantage that the values of explanatory variables are measured exactly. This makes it possible to explore more complex issues of functional form and interaction between variables in the meta-analysis. The results indicate for both models that first- and second-order polynomials provide sufficient approximations of the model response. Especially in the CGE model, interaction terms between elasticities and policy variables are important. We conclude that meta-analysis can provide insights into the behaviour of trade policy models beyond what is possible with conventional sensitivity analysis and qualitative reviews.

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Bibliographic Info

Paper provided by Canadian Agricultural Trade Policy Research Network in its series Commissioned Papers with number 43466.

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Date of creation: May 2008
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Handle: RePEc:ags:catpcp:43466

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Related research

Keywords: trade; policy model; Doha; meta-analysis; Agricultural and Food Policy; Demand and Price Analysis; International Development; International Relations/Trade;

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  1. T. D. Stanley, 2001. "Wheat from Chaff: Meta-analysis as Quantitative Literature Review," Journal of Economic Perspectives, American Economic Association, vol. 15(3), pages 131-150, Summer.
  2. Anderson, Kym & Martin, Will & van der Mensbrugghe, Dominique, 2006. "Doha merchandise trade reform : what's at stake for developing countries ?," Policy Research Working Paper Series 3848, The World Bank.
  3. Boys, Kathryn A. & Florax, Raymond J.G.M., 2007. "Meta-Regression Estimates for CGE Models: A Case Study for Input Substitution Elasticities in Production Agriculture," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN 9683, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  4. Markus Knell & Helmut Stix, 2005. "The Income Elasticity of Money Demand: A Meta-Analysis of Empirical Results ," Journal of Economic Surveys, Wiley Blackwell, vol. 19(3), pages 513-533, 07.
  5. Bchir, Mohamed Hedi & Jean, Sebastien & Laborde, David, 2005. "Binding Overhang and Tariff-Cutting Formulas," Working Papers 18873, TRADEAG - Agricultural Trade Agreements.
  6. Sebastian Hess & Stephan von Cramon-Taubadel, 2007. "Meta-analysis of general and partial equilibrium simulations of Doha Round outcomes," Agricultural Economics, International Association of Agricultural Economists, vol. 37(s1), pages 281-286, December.
  7. Hertel, Thomas W., 1999. "Future Directions in Global Trade Analysis," GTAP Working Papers 298, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  8. Arndt, Channing, 1996. "An Introduction to Systematic Sensitivity Analysis via Gaussian Quadrature," GTAP Technical Papers 305, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
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Cited by:
  1. Mario Holzner, 2013. "Impact of Croatian EU Accession on Regional Trade Patterns," wiiw Policy Notes 10, The Vienna Institute for International Economic Studies, wiiw.

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