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Agricultural Trade Liberalisation and Economic Growth in Developing Countries: Analysis of Distributional Consequences

Author

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  • Ali, Ershad
  • Talukder, Dayal

Abstract

The article analyses the impact of agricultural trade liberalisation on economic growth as well as on the welfare of rural livelihoods in developing countries through technological transformation in the agricultural sector. The article, based on existing literature, considers the background and reasons for the policy shift in developing economies away from agricultural protection and toward trade liberalisation. It attempts to shed light on the debate over the distributional consequences resulting from trade liberalisation. It also analyses how agricultural trade policy reforms affect poverty and inequality, since the majority of the population of developing countries is involved with agriculture, and these households are predominantly rural poor and functionally landless. The study found that trade liberalisation in the agricultural sector has had positive impacts on the agricultural sector but has contributed very little to poverty reduction because of the lack of income distribution and inequality measures in the policy sphere. The article might be useful for policy makers and researchers.

Suggested Citation

  • Ali, Ershad & Talukder, Dayal, 2010. "Agricultural Trade Liberalisation and Economic Growth in Developing Countries: Analysis of Distributional Consequences," eJADE: electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization, Agricultural and Development Economics Division, vol. 11(2).
  • Handle: RePEc:ags:ejadef:93447
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    File URL: http://purl.umn.edu/93447
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    References listed on IDEAS

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    1. Hoekman, Bernard & Martin, Will & Mattoo, Aaditya, 2010. "Conclude Doha: it matters!," World Trade Review, Cambridge University Press, vol. 9(03), pages 505-530, July.
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    3. Antoine Bouët & David Laborde, 2010. "Why is the Doha Development Agenda Failing? And What Can Be Done? A Computable General Equilibrium–Game Theoretical Approach," The World Economy, Wiley Blackwell, vol. 33(11), pages 1486-1516, November.
    4. Bouët Antoine & Laborde-Debucquet David & Dienesch Elisa & Elliott Kimberly, 2012. "The Costs and Benefits of Duty-Free, Quota-Free Market Access for Poor Countries: Who and What Matters," Journal of Globalization and Development, De Gruyter, vol. 3(1), pages 1-27, June.
    5. Bouet, Antoine & Decreux, Yvan & Fontagne, Lionel & Jean, Sebastien & Laborde, David, 2005. "A Consistent Picture of Applied Protection Across the World," Working Papers 18859, TRADEAG - Agricultural Trade Agreements.
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    7. Decreux, Yvan & Valin, Hugo, 2007. "MIRAGE, Updated Version of the Model for Trade Policy Analysis: Focus on Agriculture and Dynamics," Working Papers 7284, TRADEAG - Agricultural Trade Agreements.
    8. repec:dau:papers:123456789/6497 is not listed on IDEAS
    9. Boumellassa, Houssein & Debucquet, David Laborde & Mitaritonna, Cristina, 2009. "A picture of tariff protection across the World in 2004: MAcMap-HS6, Version 2," IFPRI discussion papers 903, International Food Policy Research Institute (IFPRI).
    10. Berisha-Krasniqi, Valdete & Bouet, Antoine & Laborde, David & Mevel, Simon, 2008. "The development promise: Can the doha development agenda deliver for least developed countries?," Research briefs 14, International Food Policy Research Institute (IFPRI).
    11. Mohamed Hedi Bchir & Yvan Decreux & Jean-Louis Guérin & Sébastien Jean, 2002. "MIRAGE, a Computable General Equilibrium Model for Trade Policy Analysis," Working Papers 2002-17, CEPII research center.
    12. Bouet, Antoine & Mishra, Santosh & Roy, Devesh, 2008. "Does Africa trade less than it should, and if so, why?: The role of market access and domestic factors," IFPRI discussion papers 770, International Food Policy Research Institute (IFPRI).
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