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Bilateralism in Agriculture when Countries use Distorting Domestic Policies

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  • May, Daniel E.
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    Abstract

    A recent theoretical research proved that countries always have an incentive to deviate from global free trade when international markets are oligopolistic and when governments are politically biased. This result suggests that global free trade in agriculture (GFTA) cannot be reached as political bias and market power have both been identified. According to May (2011), bilateral agreements could eventually be used as alternative political tools to reach GFTA. This article extends the work of this author to determine whether bilateralism could also lead to GFTA in a realistic world where governments use distorting domestic policies to protect their agricultural sector.

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    File URL: http://purl.umn.edu/114657
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    Bibliographic Info

    Paper provided by European Association of Agricultural Economists in its series 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland with number 114657.

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    Date of creation: 02 Sep 2011
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    Handle: RePEc:ags:eaae11:114657

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    Related research

    Keywords: Bilateral Agreements; Agricultural Trade Liberalization; Distorting Domestic Policies; International Trade Networks.; International Relations/Trade; F12; Q17; Q18;

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    1. Reimer Jeffrey J & Stiegert Kyle, 2006. "Imperfect Competition and Strategic Trade Theory: Evidence for International Food and Agricultural Markets," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 4(1), pages 1-27, September.
    2. Brent Hueth & Philippe Marcoul, 2006. "Information Sharing and Oligopoly in Agricultural Markets: The Role of the Cooperative Bargaining Association," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(4), pages 866-881.
    3. Sanjeev Goyal & Sumit Joshi, 2006. "Bilateralism And Free Trade," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 47(3), pages 749-778, 08.
    4. Taiji Furusawa & Hideo Konishi, 2002. "Free Trade Networks," Boston College Working Papers in Economics 548, Boston College Department of Economics, revised 08 Sep 2003.
    5. Steve McCorriston, 2002. "Why should imperfect competition matter to agricultural economists?," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 29(3), pages 349-371, July.
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