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Incentives of small countries to participate in a global free trade agreement in agriculture: a theoretical analysis

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  • May, Daniel E.

Abstract

During the last two decades a number of international rounds have been carried out with the objective of reaching a global free trade agreement in agriculture (GFTA). However, little progress has been made. A recent theoretical research based on the new literature on international trade networks revealed that the existing lack of agricultural liberalisation could equate to a structural problem under the assumption of identical countries in market size. The present article extends this new research to study in particular the incentives of small countries such as Chile to deviate from GFTA (i.e. when countries are asymmetric in market size)

Suggested Citation

  • May, Daniel E., 2011. "Incentives of small countries to participate in a global free trade agreement in agriculture: a theoretical analysis," Economi­a Agraria (Revista Economia Agraria), Agrarian Economist Association (AEA), Chile, vol. 0, pages 1-7.
  • Handle: RePEc:ags:eaaeac:142623
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    File URL: http://ageconsearch.umn.edu/record/142623/files/May%202011.pdf
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    References listed on IDEAS

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    1. Daniel May, 2011. "Agricultural trade liberalization under bilateralism: an international network perspective," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 10(1), pages 23-34, April.
    2. Sanjeev Goyal & Sumit Joshi, 2006. "Bilateralism And Free Trade," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 47(3), pages 749-778, August.
    3. Stephen Devadoss, 2006. "Why do developing countries resist global trade agreements?," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 15(2), pages 191-208.
    4. Boehlje, Michael & Doering, Otto C., III, 2000. "Farm Policy In An Industrialized Agriculture," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 0(Number 1), pages 1-8, March.
    5. Daniel E. May, 2008. "Is Bilateralism Consistent with Global Free Trade?," International Journal of Business and Economics, College of Business and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 7(2), pages 137-152, August.
    6. Reimer Jeffrey J & Stiegert Kyle, 2006. "Imperfect Competition and Strategic Trade Theory: Evidence for International Food and Agricultural Markets," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 4(1), pages 1-27, September.
    7. Steve McCorriston, 2002. "Why should imperfect competition matter to agricultural economists?," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 29(3), pages 349-371, July.
    8. Gardner, Bruce L, 1987. "Causes of U.S. Farm Commodity Programs," Journal of Political Economy, University of Chicago Press, vol. 95(2), pages 290-310, April.
    9. Gary S. Becker, 1983. "A Theory of Competition Among Pressure Groups for Political Influence," The Quarterly Journal of Economics, Oxford University Press, vol. 98(3), pages 371-400.
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