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Estimating Effects of Price-distorting Policies Using Alternative Distortions Databases

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  • Kym Anderson

    ()

  • Will Martin

    ()

  • Dominique van der Mensbrugghe

    ()

Abstract

This paper addresses three questions relating to the very extensive use of the GTAP global trade protection database: Are there additional price-distorting policy instruments worthy of inclusion in the base year? What is the appropriate counterfactual set of price distortions in the year of concern (such as when a proposed reform is expected to be fully implemented, as distinct from the base year)? And how are the price distortions (e.g. tariff rates) on individual products aggregated to the GTAP product groups? We show the estimated welfare effects of policies can change substantially when more-appropriate measures of distortions are used.

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File URL: https://crawford.anu.edu.au/acde/publications/publish/papers/wp2012/wp_econ_2012_09.pdf
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Bibliographic Info

Paper provided by The Australian National University, Arndt-Corden Department of Economics in its series Departmental Working Papers with number 2012-09.

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Length: 94
Date of creation: 2012
Date of revision:
Handle: RePEc:pas:papers:2012-09

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Keywords: trade policy counterfactuals; tariff aggregation; agricultural protection growth;

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References

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  1. Anderson, Kym & Lloyd, Peter & MacLaren, Donald, 2008. "Distortions to agricultural incentives in Australia since world war II," Policy Research Working Paper Series 4471, The World Bank.
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  6. Pursell, Garry & Gulati, Ashok & Gupta, Kanupriya, 2007. "Distortions to Agricultural Incentives in India," Agricultural Distortions Working Paper 48483, World Bank.
  7. Anderson, Kym & Kurzweil, Marianne & Martin, Will & Sandri, Damiano & Valenzuela, Ernesto, 2008. "Measuring distortions to agricultural incentives, revisited," Policy Research Working Paper Series 4612, The World Bank.
  8. Johanna L. Croser & Peter J. Lloyd & Kym Anderson, 2009. "How Do Agricultural Policy Restrictions to Global Trade and Welfare Differ Across Commodities?," School of Economics Working Papers 2009-12, University of Adelaide, School of Economics.
  9. Haizheng Li & Barbara M. Fraumeni & Zhiqiang Liu & Xiaojun Wang, 2009. "Human Capital In China," NBER Working Papers 15500, National Bureau of Economic Research, Inc.
  10. Rausser,Gordon C. & Swinnen,Johan & Zusman,Pinhas, 2012. "Political Power and Economic Policy," Cambridge Books, Cambridge University Press, number 9780521148009, October.
  11. Anderson, Kym & Strutt, Anna, 2012. "Agriculture and Food Security in Asia by 2030," ADBI Working Papers 368, Asian Development Bank Institute.
  12. Martin Feldstein & Charles Horioka, 1979. "Domestic Savings and International Capital Flows," NBER Working Papers 0310, National Bureau of Economic Research, Inc.
  13. Kym Anderson, 2010. "Global Distortions to Agricultural Markets: New Indicators of Trade and Welfare Impacts, 1960 to 2007," Centre for International Economic Studies Working Papers 2010-03, University of Adelaide, Centre for International Economic Studies.
  14. Martin, Will & Mitra, Devashish, 2001. "Productivity Growth and Convergence in Agriculture versus Manufacturing," Economic Development and Cultural Change, University of Chicago Press, vol. 49(2), pages 403-22, January.
  15. Anderson, Kym & Valenzuela, Ernesto, 2006. "Do global trade distortions still harm developing country farmers ?," Policy Research Working Paper Series 3901, The World Bank.
  16. J Anderson & J.P. Neary, 1994. "Measuring the Restrictiveness of Trade Policy," CEP Discussion Papers dp0186, Centre for Economic Performance, LSE.
  17. Anderson, Kym, 1993. "Lobbying Incentives and the Pattern of Protection in Rich and Poor Countries," CEPR Discussion Papers 789, C.E.P.R. Discussion Papers.
  18. Anderson, Kym, 2008. "Distorted Agricultural Incentives and Economic Development: Asia’s Experience," CEPR Discussion Papers 6914, C.E.P.R. Discussion Papers.
  19. Christen, Elisabeth & Francois, Joseph & Hoekman, Bernard, 2013. "Computable General Equilibrium Modeling of Market Access in Services," Handbook of Computable General Equilibrium Modeling, Elsevier.
  20. Kym Anderson & Will Martin & Dominique van der Mensbrugghe, 2006. "Distortions to World Trade: Impacts on Agricultural Markets and Farm Incomes," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 28(2), pages 168-194.
  21. Kym Anderson & Will Martin & Dominique van der Mensbrugghe, 2005. "Doha Merchandise Trade Reform: WhatÂ’s at Stake for Developing Countries?," Centre for International Economic Studies Working Papers 2005-16, University of Adelaide, Centre for International Economic Studies.
  22. Joseph Francois & Will Martin, 2002. "Commercial Policy Variability, Bindings, and Market Access," International Trade 0210002, EconWPA.
  23. Antoine Bouet, 2010. "Assessing the potential cost of a failed Doha round," Working Papers hal-00637583, HAL.
  24. Ernesto Valenzuela & Kym Anderson & Thomas Hertel, 2007. "Impacts of Trade Reform: Sensitivity of Model Results to Key Assumptions," Centre for International Economic Studies Working Papers 2007-09, University of Adelaide, Centre for International Economic Studies.
  25. J Anderson & J.P. Neary, 1993. "A New Approach to Evaluating Trade Policy," CEP Discussion Papers dp0173, Centre for Economic Performance, LSE.
  26. Krueger, Anne O & Schiff, Maurice & Valdes, Alberto, 1988. "Agricultural Incentives in Developing Countries: Measuring the Effect of Sectoral and Economywide Policies," World Bank Economic Review, World Bank Group, vol. 2(3), pages 255-71, September.
  27. Kym Anderson & Ernesto Valenzuela, 2007. "The World Trade Organisation's Doha Cotton Initiative: A Tale of Two Issues," The World Economy, Wiley Blackwell, vol. 30(8), pages 1281-1304, 08.
  28. World Bank, 2007. "Global Economic Prospects 2007 : Managing the Next Wave of Globalization," World Bank Publications, The World Bank, number 7157, October.
  29. Kee, Hiau Looi & Nicita, Alessandro & Olarreaga, Marcelo, 2006. "Estimating trade restrictiveness indices," Policy Research Working Paper Series 3840, The World Bank.
  30. Bach, Christian F. & Martin, Will, 2001. "Would the right tariff aggregator for policy analysis please stand up?," Journal of Policy Modeling, Elsevier, vol. 23(6), pages 621-635, August.
  31. Joseph F. Francois & Bernard Hoekman, 2009. "Services Trade and Policy," Economics working papers 2009-03, Department of Economics, Johannes Kepler University Linz, Austria.
  32. Kym Anderson, 2010. "Krueger/Schiff/Valdes Revisited: Agricultural Price and Trade Policy Reform in Developing Countries since 1960," Centre for International Economic Studies Working Papers 2010-04, University of Adelaide, Centre for International Economic Studies.
  33. James E. Anderson, 2009. "Consistent Trade Policy Aggregation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 50(3), pages 903-927, 08.
  34. Kym Anderson, 2010. "Krueger, Schiff, and Valdés Revisited: Agricultural Price and Trade Policy Reform in Developing Countries since 1960," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 32(2), pages 195-231.
  35. Shuanglin Lin, 2009. "Tax Reforms in China and Russia," Chinese Economy, M.E. Sharpe, Inc., vol. 42(3), pages 24-40, May.
  36. Laborde, David & Martin, Will & van der Mensbrugghe, Dominique, 2011. "Implications of the Doha market access proposals for developing countries," Policy Research Working Paper Series 5679, The World Bank.
  37. Peter J. Lloyd & Johanna L. Croser & Kym Anderson, 2010. "Global Distortions to Agricultural Markets: Indicators of Trade and Welfare Impacts, 1960 to 2007," Review of Development Economics, Wiley Blackwell, vol. 14(2), pages 141-160, 05.
  38. Anderson, Kym & Martin, Will & Valenzuela, Ernesto, 2006. "The Relative Importance of Global Agricultural Subsidies and Market Access," CEPR Discussion Papers 5569, C.E.P.R. Discussion Papers.
  39. World Bank, 2005. "Global Economic Prospects 2005 : Trade, Regionalism and Development," World Bank Publications, The World Bank, number 14783, October.
  40. Peter B. Dixon & Dale Jorgenson (ed.), 2012. "Handbook of Computable General Equilibrium Modeling," Handbook of Computable General Equilibrium Modeling, Elsevier, edition 1, volume 1, number 1.
  41. van der Mensbrugghe, Dominique & Valenzuela, Ernesto & Anderson, Kym, 2009. "Border Price and Export Demand Shocks for Developing Countries from Rest-of-World Trade Liberalization Using the Linkage Model," Agricultural Distortions Working Paper 52797, World Bank.
  42. Joseph Francois & Hans van Meijl & Frank van Tongeren, 2005. "Trade liberalization in the Doha Development Round," Economic Policy, CEPR & CES & MSH, vol. 20(42), pages 349-391, 04.
  43. David Hummels & Peter J. Klenow, 2005. "The Variety and Quality of a Nation's Exports," American Economic Review, American Economic Association, vol. 95(3), pages 704-723, June.
  44. Valenzuela, Ernesto & Kym Anderson, 2009. "Alternative Agricultural Price Distortions for CGE Analysis of Developing Countries, 2004 and 1980-84," GTAP Research Memoranda 2925, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  45. Valenzuela, Ernesto & van der Mensbrugghe, Dominique & Anderson, Kym, 2008. "General equilibrium effects of price distortions on global markets, farm incomes and welfare," Agricultural Distortions Working Paper 48630, World Bank.
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