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Global distortions to agricultural markets : new indicators of trade and welfare impacts, 1955 to 2007

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  • Lloyd, Peter J.
  • Croser, Johanna L.
  • Anderson, Kym

Abstract

Despite recent reforms, world agricultural markets remain highly distorted by government policies. Traditional indicators of those price distortions can be poor guides to the policies'economic effects. Recent theoretical literature provides indicators of trade and welfare-reducing effects of price and trade policies which this paper builds on to develop more-satisfactory indexes. The authors exploit a new Agricultural Distortion database to generate estimates of them for developing and high-income countries over the past half century. These better approximations of the trade and welfare effects of sector policies are generated without a formal model of global markets or even price elasticity estimates.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4865.

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Date of creation: 01 Mar 2009
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Handle: RePEc:wbk:wbrwps:4865

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Keywords: Currencies and Exchange Rates; Economic Theory&Research; Agribusiness; Markets and Market Access; Trade Policy;

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References

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  1. 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.
  2. Anderson, Kym & Kurzweil, Marianne & Martin, Will & Sandri, Damiano & Valenzuela, Ernesto, 2008. "Measuring Distortions to Agricultural Incentives, Revisited," CEPR Discussion Papers 6924, C.E.P.R. Discussion Papers.
  3. Anderson, Kym & Martin, William J., 2007. "Distortions to Agricultural Incentives in Asia," Agricultural Distortions Working Paper 48557, World Bank.
  4. Robert Feenstra, 2004. "Estimating The Effects Of Trade Policy," Working Papers 9510, University of California, Davis, Department of Economics.
  5. Kee, Hiau Looi & Nicita, Alessandro & Olarreaga, Marcelo, 2006. "Estimating Trade Restrictiveness Indices," CEPR Discussion Papers 5576, C.E.P.R. Discussion Papers.
  6. Hiau Looi Kee & Nicita, Alessandro & Olarreaga, Marcelo, 2004. "Import demand elasticities and trade distortions," Policy Research Working Paper Series 3452, The World Bank.
  7. James E. Anderson & J. Peter Neary, 2005. "Measuring the Restrictiveness of International Trade Policy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262012200, December.
  8. MacLaren, Donald & Lloyd, Peter J., 2008. "Measuring assistance to the agricultural industry in Australia using a Production Assistance Index," 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia 6033, Australian Agricultural and Resource Economics Society.
  9. Anderson, James E. & Bannister, Geoffrey, 1992. "The trade restrictiveness index : an application to Mexican agriculture," Policy Research Working Paper Series 874, The World Bank.
  10. Valenzuela, Ernesto & Wong, Sara & Sandri, Damiano, 2007. "Distortions to Agricultural Incentives in Ecuador," Agricultural Distortions Working Paper 48394, World Bank.
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Cited by:
  1. Croser, Johanna & Anderson, Kym, 2010. "Changing contributions of different agricultural policy instruments to global reductions in trade and welfare," Policy Research Working Paper Series 5345, The World Bank.
  2. Kym Anderson & Johanna Croser, 2010. "Novel Indicators of the Trade and Welfare Effects of Agricultural Distortions in OECD Countries," Centre for International Economic Studies Working Papers 2010-09, University of Adelaide, Centre for International Economic Studies.
  3. Anderson, Kym, 2009. "Krueger/Schiff/Vald├ęs Revisited: Agricultural Price and Trade Policy Reform in Developing Countries since 1960," CEPR Discussion Papers 7601, C.E.P.R. Discussion Papers.
  4. Anderson, Kym & Croser, Johanna L. & Sandri, Damiano & Valenzuela, Ernesto, 2009. "Agricultural Distortion Patterns Since the 1950s: What Needs Explaining?," Agricultural Distortions Working Paper 50305, World Bank.
  5. Lloyd, Peter J. & Croser, Johanna L. & Anderson, Kym, 2009. "How do agricultural policy restrictions to global trade and welfare differ across commodities ?," Policy Research Working Paper Series 4864, The World Bank.
  6. Anderson, Kym, 2009. "Political Economy of Distortions to Agricultural Incentives: Introduction and Summary," Agricultural Distortions Working Paper 50306, World Bank.
  7. Cletus C. Coughlin, 2010. "Measuring international trade policy: a primer on trade restrictiveness indices," Review, Federal Reserve Bank of St. Louis, issue Sep, pages 381-394.

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