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:
- TF0 - - - - - -
- FUN - International Economics - - - - -
- OPE - Economic Development, Technological Change, and Growth - - - - -
- ADM - General Economics and Teaching - - - - -
- FEE - International Economics - - - - -
- INC - Health, Education, and Welfare - - - - -
- AND - General Economics and Teaching - - - - -
- EXP - Macroeconomics and Monetary Economics - - - - -
- ACC - General Economics and Teaching - - - - -
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.:
- Brandao, Antonio Salazar P. & Martin, Will J., 1993.
"Implications of agricultural trade liberalization for the developing countries,"
Blackwell, vol. 8(4), pages 313-343, June.
- 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.
- 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.
- J Anderson & J.P. Neary, 1993.
"A New Approach to Evaluating Trade Policy,"
CEP Discussion Papers
dp0173, Centre for Economic Performance, LSE.
- J Anderson & J.P. Neary, 1994.
"Measuring the Restrictiveness of Trade Policy,"
CEP Discussion Papers
dp0186, Centre for Economic Performance, LSE.
- Diaz-Bonilla, Eugenio & Reca, Lucio, 2000. "Trade and agroindustrialization in developing countries: trends and policy impacts," Agricultural Economics, Blackwell, vol. 23(3), pages 219-229, September.
- Luis San Vicente Portes, 2005. "On the Distributional Effects of Trade Policy: A Macroeconomic Perspective," Computing in Economics and Finance 2005 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 51136, International Association of Agricultural Economists.
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.