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Freer International Trade and the Consequences for EU rural areas

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  • Bureau, Jean-Christophe

Abstract

General equilibrium models estimated by various authors and institutions show that, although trade liberalization leads to aggregate welfare gains, there are winners and losers when it comes to the distribution. The aim of this article is to determine to what extent rural regions have won or lost in the trade opening process that has been underway since the 1990s. The economic literature on international trade and regional development suggests the presence of opposing forces, making the global impact of international trade liberalization on rural areas ambiguous. Using a series of empirical studies, in particular the DREAM model (CEPII), the author assesses the impact of trade opening on the European Regions, observing a significant proportion of losers in the trade liberalization process among the rural regions of Europe. The article concludes with an analysis of the negative effects of welfare losses on the environment and territorial ordering in many rural regions, and suggests the need to address the problem by modifying current EU policies. Comercio internacional libre y las consecuencias para las áreas rurales europeas Resumen Los modelos de equilibrio general estimados por varios autores e instituciones muestran que, aunque la liberalización del comercio conduce a un bienestar agregado, hay ganadores y perdedores cuando se tiene en cuenta la distribución. El objetivo de este artículo es determinar que regiones rurales han ganado y cuáles han perdido en el proceso de apertura de los mercados que está en proceso desde 1990. La literatura económica sobre comercio internacional y desarrollo regional sugiere que la presencia de fuerzas de oposición, hace que el impacto global de la liberalización internacional del mercado sobre las áreas rurales sea ambiguo. Usando una serie de estudios empíricos, en particular el modelo DREAM (CEPII), el autor asegura el impacto de la apertura de mercados en las regiones europeas, observando una proporción significativa de perdedores entre las regiones rurales de Europa. El artículo concluye con un análisis de los efectos negativos de las pérdidas de protección sobre el ambiente y el territorio, y sugiere la necesidad de dirigir el problema mediante una modificación de las políticas actuales de la UE. Palabras clave: liberalización de mercado, regiones rurales europeas, política de desarrollo rural.

Suggested Citation

  • Bureau, Jean-Christophe, 2006. "Freer International Trade and the Consequences for EU rural areas," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 6(12), pages 1-24.
    • Handle: RePEc:ags:earnsa:7995
    DOI: 10.22004/ag.econ.7995
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