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Agricultural trade reform and poverty reduction in developing countries

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Author Info
Kym Anderson

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Abstract

This paper offers an economic assessment of the opportunities and challenges provided by the WTO’s Doha Development Agenda, particularly through agricultural trade liberalization, for low-income countries seeking to trade their way out of poverty. After discussing links between poverty, economic growth and trade, it reports modelling results showing that farm product markets remain the most costly of all goods market distortions in world trade. It focuses on what such reform might mean for developing countries both without and with their involvement in the multilateral trade negotiations. What becomes clear is that if those countries want to maximize their benefits from the Doha round, they need also to free up their own domestic product and factor markets so their farmers are better able to take advantage of new market-opening opportunities abroad. Other concerns of low-income countries about farm trade reform also are addressed: whether there would be losses associated with tariff preference erosion, whether food-importing countries would suffer from higher food prices in international markets, whether China’s WTO accession will provide an example of trade reform aggravating poverty via cuts to prices received by Chinese farmers, and the impact on food security and poverty alleviation.

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Paper provided by IIIS in its series The Institute for International Integration Studies Discussion Paper Series with number iiisdp014.

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Date of creation: 01 Jan 2004
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Handle: RePEc:iis:dispap:iiisdp014

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Related research
Keywords: WTO; agricultural protection; trade liberalization; poverty alleviation;

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This paper has been announced in the following NEP Reports: 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. Hazell, P. B. R. & Haddad, Lawrence James, 2001. "Agricultural research and poverty reduction:," 2020 vision discussion papers 34, International Food Policy Research Institute (IFPRI). [Downloadable!]
    Other versions:
  2. Lloyd, P. J., 1974. "A more general theory of price distortions in open economies," Journal of International Economics, Elsevier, vol. 4(4), pages 365-386, November. [Downloadable!] (restricted)
  3. 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)
  4. Hoekman, Bernard & Ng, Francis & Olarreaga, Marcelo, 2001. "Eliminating excessive tariffs on exports of least developed countries," Policy Research Working Paper Series 2604, The World Bank. [Downloadable!]
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  5. Hoekman, Bernard & Michalopoulos, Constantine & Schiff, Maurice & Tarr, David, 2001. "Trade policy reform and poverty alleviation," Policy Research Working Paper Series 2733, The World Bank. [Downloadable!]
  6. Bjornskov, Christian & Lind, Kim Martin, 2002. "Where Do Developing Countries Go After Doha? An analysis of WTO positions and potential alliances," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24915, European Association of Agricultural Economists. [Downloadable!]
  7. Christopher L. Gilbert & Panos Varangis, 2003. "Globalization and International Commodity Trade with Specific Reference to the West African Cocoa Producers," NBER Working Papers 9668, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  8. Xavier Sala-i-Martin, 2002. "The World Distribution of Income (estimated from Individual Country Distributions)," NBER Working Papers 8933, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  9. Anderson, Kym & Jackson, Lee Ann, 2004. "Standards, Trade And Protection: The Case Of Gmos," 2004 Annual meeting, August 1-4, Denver, CO 20282, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  10. Hoekman, Bernard & Anderson, Kym, 1999. "Developing country agriculture and the new trade agenda," Policy Research Working Paper Series 2125, The World Bank. [Downloadable!]
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  11. Ianchovichina, Elena & Mattoo, Aaditya & Olarreaga, Marcelo, 2001. "Unrestricted Market Access for Sub-Saharan Africa: How Much is it Worth and Who Pays?," CEPR Discussion Papers 2820, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  12. Lloyd, Peter, 2000. "Generalizing the Stolper-Samuelson Theorem: A Tale of Two Matrices," Review of International Economics, Blackwell Publishing, vol. 8(4), pages 597-613, November. [Downloadable!] (restricted)
  13. Martin, W. & Winters, L.A., 1995. "The Uruguay Round and the Developing Countries," World Bank - Discussion Papers 307, World Bank.
  14. Grant E. Issac & William A. Kerr, 2003. "Genetically Modified Organisms and Trade Rules: Identifying Important Challenges for the WTO," The World Economy, Blackwell Publishing, vol. 26(1), pages 29-42, January. [Downloadable!] (restricted)
  15. Kym Anderson & Shunli Yao, 2003. "China, Gmos And World Trade In Agricultural And Textile Products," Pacific Economic Review, Blackwell Publishing, vol. 8(2), pages 157-169, 06. [Downloadable!] (restricted)
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  16. L. Alan Winters, 2002. "Trade Liberalisation and Poverty: What are the Links?," The World Economy, Blackwell Publishing, vol. 25(9), pages 1339-1367, 09. [Downloadable!] (restricted)
  17. Dollar, David & Kraay, Aart, 2002. " Growth Is Good for the Poor," Journal of Economic Growth, Springer, vol. 7(3), pages 195-225, September. [Downloadable!] (restricted)
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  18. Beghin, John C. & Roland-Holst, David & van der Mensbrugghe, Dominique, 2003. "How Will Agricultural Trade Reforms in High-income Countries Affect the Trading Relationships of Developing Countries?," Staff General Research Papers 10665, Iowa State University, Department of Economics.
  19. Ruffin, Roy & Jones, Ronald, 1977. "Protection and real wages: The neoclassical ambiguity," Journal of Economic Theory, Elsevier, vol. 14(2), pages 337-348, April. [Downloadable!] (restricted)
  20. Kym Anderson & Shunli Yao, 2001. "How Can South Asia and Sub-Saharan Africa Gain From the Next WTO Round?," Trade Working Papers 155, East Asian Bureau of Economic Research. [Downloadable!]
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Full references

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. Valenzuela, Ernesto & Hertel, Thomas, 2006. "Poverty Vulnerability and Trade Policy: Are the Likely Impacts Discernable?," 2006 Annual meeting, July 23-26, Long Beach, CA 21397, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  2. Prabhu Pingali & Randy Stringer, 2003. "Food Security and Agriculture in the Low Income, Food- Deficit countries: 10 years after the Uruguay Round," Working Papers 03-18, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA). [Downloadable!]
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