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Assessing Protectionism and Subsidies in Agriculture: A Gravity Approach

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Author Info
Claudio Paiva
Abstract

This paper provides the first comprehensive empirical analysis of agricultural trade using a gravity model. The data set covers bilateral trade in agricultural goods for 152 countries over the periods 1990-93 and 1999-2002. The estimations support claims that protectionism and distortive subsidies to agriculture remain widespread in more developed nations, which are shown to import less and export more agricultural products than expected given other economic, political, and geographic determinants of trade. However, some developing regions that are often thought to be the main victims of industrial-country protectionism are also found to be relatively closed to agricultural trade.

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Paper provided by International Monetary Fund in its series IMF Working Papers with number 05/21.

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Length: 17 pages
Date of creation: 08 Feb 2005
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Handle: RePEc:imf:imfwpa:05/21

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Related research
Keywords: Protectionism ; Trade ; Agricultural subsidies ; Economic models ;

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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. Dimaranan, Betina & Hertel, Thomas & Keeney, Roman, 2003. "OECD Domestic Support and the Developing Countries," 2003 Annual meeting, July 27-30, Montreal, Canada 22000, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
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  2. Anderson, Kym, 2003. "Trade Liberalization, Agriculture, and Poverty in Low-income Countries," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  3. Aaditya Mattoo & Arvind Subramanian, 2004. "The WTO and the Poorest Countries: The Stark Reality," IMF Working Papers 04/81, International Monetary Fund. [Downloadable!]
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  4. Shang-Jin Wei, 1996. "Intra-National versus International Trade: How Stubborn are Nations in Global Integration?," NBER Working Papers 5531, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Haveman, Jon D. & Shatz, Howard J., 2003. "Developed Country Trade Barriers and the Least Developed Countries: The Economic Results of Freeing Trade," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  6. Subramanian, Arvind & Wei, Shang-Jin, 2005. "The WTO Promotes Trade, Strongly But Unevenly," CEPR Discussion Papers 5122, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  7. Dimaranan, Betina & Hertel, Thomas & Keeney, Roman, 2003. "OECD Domestic Support and Developing Countries," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  8. Rose, Andrew K, 2002. "Do We Really Know that the WTO Increases Trade?," CEPR Discussion Papers 3538, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  9. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March. [Downloadable!]
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  10. Daria Taglioni, 2002. "Exchange Rate Volatility as a Barrier to Trade: New Methodologies and Recent Evidence," Economie Internationale, CEPII research center, issue 1Q-2Q, pages 227-259. [Downloadable!]
  11. 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!]
  12. Chen, Natalie, 2002. "Intra-national versus International Trade in the European Union: Why do National Borders Matter?," CEPR Discussion Papers 3407, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  13. Feng Zhu & Enzo Croce & V. Hugo Juan-Ramon, 2004. "Performance of Western Hemisphere Trading Blocs: A Cost-Corrected Gravity Approach," IMF Working Papers 04/109, International Monetary Fund. [Downloadable!]
  14. Francois, Joseph & van Meijl, Hans & van Tongeren, Frank, 2003. "Trade Liberalization and Developing Countries Under the Doha Round," CEPR Discussion Papers 4032, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  15. repec:rus:hseeco:123040 is not listed on IDEAS
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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. Iimi, Atsushi, 2007. "Infrastructure and trade preferences for the livestock sector : empirical evidence from the beef industry in Africa," Policy Research Working Paper Series 4201, The World Bank. [Downloadable!]
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