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Los Impactos de la abolición de la Politica Agraria Común en España: Una aproximación analítica

  • Ramos Argudo, Ramon
  • Lordeman, J. Aliaga
  • Choliz, J. Sanchez

The aim of this paper is to quantitatively assess the long run economic impact of Common Agricultural Policy (CAP) abolition, where in particular, we focus on the Spanish economy. To carry out our analysis, we employ the Global Trade Analysis Project (GTAP) computable general equilibrium model with accompanying version 6 data. In its present incarnation, the data captures the global economy in 2001. To characterise abolition of the CAP we unilaterally remove all pillar one CAP support. In addition, we eliminate export subsidies and EU import tariffs which affect primary agriculture and food processing sectors, all of it according to the benchmark equilibrium in 2001. Examining traditional general equilibrium welfare measures of market efficiency and terms of trade effects, our underlying result is that Spain realises a small welfare gain from removal of the CAP, although this finding carries a caveat. ABSTRACT The aim of this paper is to quantitatively assess the long run economic impact of Common Agricultural Policy (CAP) abolition, where in particular, we focus on the Spanish economy. To carry out our analysis, we employ the Global Trade Analysis Project (GTAP) computable general equilibrium model with accompanying version 6 data. In its present incarnation, the data captures the global economy in 2001. To characterise abolition of the CAP we unilaterally remove all pillar one CAP support. In addition, we eliminate export subsidies and EU import tariffs which affect primary agriculture and food processing sectors, all of it according to the benchmark equilibrium in 2001. Examining traditional general equilibrium welfare measures of market efficiency and terms of trade effects, our underlying result is that Spain realises a small welfare gain from removal of the CAP, although this finding carries a caveat. Keywords: Computable General Equilibrium, Common Agricultural Policy, Agricultural international trade, GTAP.

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Article provided by Sociedad Mexicana de Administracion Agropecuaria in its journal Revista Mexicana de Agronegocios.

Volume (Year): 24 (2009)
Issue (Month): ()
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Handle: RePEc:ags:remeag:48591
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