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Measuring the Impact of Distortions in Agricultural Trade in Partial and General Equilibrium

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  • Mr. Stephen Tokarick

Abstract

This paper provides quantitative estimates of the impact of removing agricultural support (both tariffs and subsidies) in partial- and general-equilibrium frameworks. The results show that agricultural support in industrial countries is highly distortionary and tariffs have a larger distortionary impact than subsidies. Removal of agricultural support would likely raise the international prices of food, resulting in an increase in the cost of food for many net-food- importing countries, although the increase is generally small. The results also show that most of the benefits from removing agricultural support accrue to the countries that liberalize.

Suggested Citation

  • Mr. Stephen Tokarick, 2003. "Measuring the Impact of Distortions in Agricultural Trade in Partial and General Equilibrium," IMF Working Papers 2003/110, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2003/110
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    References listed on IDEAS

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