Has agricultural trade liberalization improved welfare in the least-developed countries? Yes
AbstractThe author evaluates the progress in agricultural liberalization -and the welfare effects for least-developed and net food-importing countries- as a result of agricultural price shocks resulting from the Uruguay Round. She findsthat: (1) The changes in welfare are significantly affected by the structure of trade and distortions in the domestic economy. (2) Although many economies are hurt by increases in world prices, losses in terms of trade are small relative to total GDP. Only in a few countries does the estimated welfare change constitute more than 1 percent of GDP. (3) In several countries, the distortion effects are significantly larger than the terms-of-trade effects. In some cases, the distortion effects work in opposition to the terms-of-trade effects and are large enough to reverse the sign of the net welfare change. In short, removing policy distortions could convert the small loss in terms of trade to potential gains. But many least-developed, net food-importing countries did not use the Round to support domestic efforts at trade reform. As most studies show, most gains from multilateral liberalization come from the countries'own liberalization efforts, so countries that failed to liberalize their trade policy lost the opportunity for gains.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 1748.
Date of creation: 30 Apr 1997
Date of revision:
Payment Systems&Infrastructure; Environmental Economics&Policies; Economic Theory&Research; Trade Policy; Transport and Trade Logistics; TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT; Economic Theory&Research; Trade Policy; Access to Markets; Environmental Economics&Policies;
Find related papers by JEL classification:
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.:
- Anderson, James E. & Neary, J. Peter, 1992.
"A new approach to evaluating trade policy,"
Policy Research Working Paper Series
1022, The World Bank.
- Anderson, James E & Neary, J Peter, 1992. "A New Approach to Evaluating Trade Policy," CEPR Discussion Papers, C.E.P.R. Discussion Papers 683, C.E.P.R. Discussion Papers.
- J Anderson & J.P. Neary, 1993. "A New Approach to Evaluating Trade Policy," CEP Discussion Papers dp0173, Centre for Economic Performance, LSE.
- Anderson, James E & Neary, J Peter, 1994.
"Measuring the Restrictiveness of Trade Policy,"
World Bank Economic Review, World Bank Group,
World Bank Group, vol. 8(2), pages 151-69, May.
- Salazar P. Brandao, Antonio & Martin, Will, 1993.
"Implications of agricultural trade liberalization for the developing countries,"
Policy Research Working Paper Series
1116, The World Bank.
- Brandao, Antonio Salazar P. & Martin, Will J., 1993. "Implications of agricultural trade liberalization for the developing countries," Agricultural Economics, Blackwell, Blackwell, vol. 8(4), pages 313-343, June.
- Tyers, Rod & Falvey, Rod, 1989. "Border Price Changes and Domestic Welfare in the Presence of Subsidised Exports," Oxford Economic Papers, Oxford University Press, vol. 41(2), pages 434-51, April.
- Diaz-Bonilla, Eugenio & Reca, Lucio, 2000. "Trade and agroindustrialization in developing countries: trends and policy impacts," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 23(3), September.
- Luis San Vicente Portes, 2005. "On the Distributional Effects of Trade Policy: A Macroeconomic Perspective," Computing in Economics and Finance 2005, Society for Computational Economics 358, Society for Computational Economics.
- Bezuneh, Mesfin & Yiheyis, Zelealem, 2009. "Has Trade Liberalization Improved Food Availability in Developing Countries? An Empirical Analysis," 2009 Conference, August 16-22, 2009, Beijing, China, International Association of Agricultural Economists 51136, International Association of Agricultural Economists.
- Diaz-Bonilla, Eugenio & Reca, Lucio, 2000. "Trade and agroindustrialization in developing countries: trends and policy impacts," Agricultural Economics, Blackwell, Blackwell, vol. 23(3), pages 219-229, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).
If references are entirely missing, you can add them using this form.