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The Uruguay Round and Welfare in Some Distorted Agricultural Economies

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Author Info
James E. Anderson () (Boston College)

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Abstract

There is widespread concern about the effect of the Uruguay Round policy changes on world agricultural prices and consequently upon the welfare of developing countries. Assessing welfare changes with the standard terms of trade effect calculation can be misleading for distorted economies, since the distortion effect operates in addition or in opposition to the terms of trade effect. This study reveals distortion effects which are many times larger than terms of trade effects in a study of the Uruguay Round's impact on 9 agricultural economies. In 3 of 9 cases, the distortion effect reverses the impact of the terms of trade effect. In 2 other cases the distortion effect raises a trivial terms of trade effect up to around 1% of national income.

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File URL: http://fmwww.bc.edu/EC-P/WP360.pdf
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Publisher Info
Paper provided by Boston College Department of Economics in its series Boston College Working Papers in Economics with number 360.

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Length: 32 pages
Date of creation: 01 Jan 1997
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Publication status: published, Journal of Development Economics, 1998, 56:393-410
Handle: RePEc:boc:bocoec:360

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Related research
Keywords: Uruguay Round;

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Find related papers by JEL classification:
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade
O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
O20 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - General

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. K. Anderson & R. Tyers, 1993. "More On Welfare Gains To Developing Countries From Liberalizing World Food Trade," Journal of Agricultural Economics, Blackwell Publishing, vol. 44(2), pages 189-204. [Downloadable!] (restricted)
  2. Alston, Julian M & Martin, Will, 1995. "Border Price Changes and Domestic Welfare in the Presence of Distortions: A Comment," Oxford Economic Papers, Oxford University Press, vol. 47(1), pages 79-82, January. [Downloadable!] (restricted)
  3. J Anderson & J.P. Neary, 1994. "Measuring the Restrictiveness of Trade Policy," CEP Discussion Papers dp0186, Centre for Economic Performance, LSE.
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  4. Tyers, Rod & Falvey, Rod, 1989. "Border Price Changes and Domestic Welfare in the Presence of Subsidised Exports," Oxford Economic Papers, Oxford University Press, vol. 41(2), pages 434-51, April. [Downloadable!] (restricted)
  5. James Anderson, 1995. "Trade Restrictiveness Benchmarks," Boston College Working Papers in Economics 290., Boston College Department of Economics. [Downloadable!]
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  6. Anderson, James E & Neary, J Peter, 1996. "A New Approach to Evaluating Trade Policy," Review of Economic Studies, Blackwell Publishing, vol. 63(1), pages 107-25, January. [Downloadable!] (restricted)
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  7. Anderson, James E & Bannister, Geoffrey J & Neary, J Peter, 1995. "Domestic Distortions and International Trade," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 36(1), pages 139-57, February. [Downloadable!] (restricted)
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  8. Lopez, Ramon & Panagariya, Arvind, 1992. "On the Theory of Piecemeal Tariff Reform: The Case of Pure Imported Intermediate Inputs," American Economic Review, American Economic Association, vol. 82(3), pages 615-25, June. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Burfisher, Mary E. & Robinson, Sherman & Thierfelder, Karen, 2000. "Small countries and the case for regionalism vs. multilateralism," TMD discussion papers 54, International Food Policy Research Institute (IFPRI). [Downloadable!]
  2. Luis San Vicente Portes, 2005. "On the Distributional Effects of Trade Policy: A Macroeconomic Perspective," Computing in Economics and Finance 2005 358, Society for Computational Economics. [Downloadable!]
  3. Stephen Tokarick, 2003. "Measuring the Impact of Distortions in Agricultural Trade in Partial and General Equilibrium," IMF Working Papers 03/110, International Monetary Fund. [Downloadable!]
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