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Understanding the impact of Cotton Subsidies on developing countries

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Author Info

  • Gillson, I
  • Poulton, Colin
  • Balcombe, Kelvin
  • Page, S

Abstract

Models developed to investigate the impact of cotton subsidies have found that US support, by virtue of its absolute magnitude, is particularly damaging and responsible for most of the reduction in cotton-earning potential in developing countries. This has been used as an argument for reducing or postponing cuts in subsidies to European farmers, as these appear to have less impact on developing countries. Our results, through a careful examination of the nature of the cotton market, agree but suggest that under certain assumptions subsidies by smaller subsidisers (such as the EU) may be disproportionately harmful to some suppliers, notably to West and Central African countries. This is especially damaging to them since they have the potential to increase supply.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 15373.

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Date of creation: 2004
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Handle: RePEc:pra:mprapa:15373

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Related research

Keywords: Cotton; Subsidies; Development;

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References

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  1. Louis M. Goreux & Paul R. Masson & Dhaneshwar Ghura & Ousmane Badiane, 2002. "Cotton Sector Strategies in West and Central Africa," IMF Working Papers 02/173, International Monetary Fund.
  2. Govereh, Jones & Jayne, T. S., 2003. "Cash cropping and food crop productivity: synergies or trade-offs?," Agricultural Economics, Blackwell, vol. 28(1), pages 39-50, January.
  3. Chakraborty, Kalyan & Hudson, Darren & Ethridge, Don E. & Misra, Sukant K. & Kar, Gyana, 1999. "An Overview of the Cotton and Textile Industries in India," Cotton Economics Research Institute CER Series 53178, Texas Tech University, Department of Agricultural and Applied Economics.
  4. Minot, Nicholas & Daniels, Lisa, 2002. "Impact of global cotton markets on rural poverty in Benin," MTID discussion papers 48, International Food Policy Research Institute (IFPRI).
  5. Maumbe, Blessing M. & Swinton, Scott M., 2003. "Hidden health costs of pesticide use in Zimbabwe's smallholder cotton growers," Social Science & Medicine, Elsevier, vol. 57(9), pages 1559-1571, November.
  6. Stephen Tokarick, 2003. "Measuring the Impact of Distortions in Agricultural Trade in Partial and General Equilibrium," IMF Working Papers 03/110, International Monetary Fund.
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Citations

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Cited by:
  1. Hazell, Peter & Poulton, Colin & Wiggins, Steve & Dorward, Andrew, 2010. "The Future of Small Farms: Trajectories and Policy Priorities," World Development, Elsevier, vol. 38(10), pages 1349-1361, October.
  2. Vitale, Jeffrey D. & Sanders, John H., 2005. "Estimating the Impacts of Liberalization in West Africa: The Malian Case," 2005 Annual meeting, July 24-27, Providence, RI 19481, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  3. Shepherd, Ben, 2006. "Estimating Price Elasticities of Supply for Cotton: A Structural Time-Series Approach," MPRA Paper 1252, University Library of Munich, Germany.
  4. Catherine Araujo Bonjean & Stéphane Calipel & Fousseini Traore, 2011. "L'impact des aides américaines et européennes sur le marché du coton : résultats d'un modèle d'équilibre partiel dynamique," Working Papers halshs-00564570, HAL.
  5. Kohnert, Dirk, 2006. "Vom Nutzen afrikanischer Zuwanderer für Europa. Wende in der EU-Einwanderungspolitik?
    [On the benefit of African immigration to Europe. Turn in the EU immigration policy?]    ," MPRA Paper 1064, University Library of Munich, Germany.
  6. Addison, Tony, 2005. "Post-Conflict Recovery: Does the Global Economy Work for Peace?," Working Papers DP2005/05, World Institute for Development Economic Research (UNU-WIDER).
  7. Shepherd, Ben & Delpeuch, Claire, 2007. "Subsidies and regulatory reform in West African cotton: What are the development stakes?," MPRA Paper 2289, University Library of Munich, Germany.
  8. Delpeuch, Claire, 2011. "African cotton markets at crossroads : will the price spike turn into a new kick-start ?," Policy Research Working Paper Series 5847, The World Bank.
  9. Tony Addison, 2009. "Post-Conflict Recovery: Does the Global Economy Work for Peace?," Working Papers id:2299, eSocialSciences.
  10. Blasco, Lorea Barron & Devadoss, Stephen & Stodick, Leroy, 2006. "The Doha Round Declaration on Cotton: A Catalyst for Poverty Reduction in Africa?," 2006 Annual meeting, July 23-26, Long Beach, CA 21161, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  11. Gadanakis, Yiorgos & Baourakis, George & Clapan, Carmen, 2007. "Measuring the impacts of distortions in the European Union cotton sector: a partial equilibrium analysis using the ATPSM model framework," Working Papers 7285, TRADEAG - Agricultural Trade Agreements.
  12. Orden, David & Salam, Abdul & Dewina, Reno & Nazli, Hina & Minot, Nicholas, 2006. "The Impact of Global Cotton Markets on Rural Poverty in Pakistan," 2006 Annual meeting, July 23-26, Long Beach, CA 21381, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  13. Cororaton, Caesar B. & Orden, David, 2008. "Pakistan's cotton and textile economy: Intersectoral linkages and effects on rural and urban poverty," Research reports 158, International Food Policy Research Institute (IFPRI).

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