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More On Welfare Gains To Developing Countries From Liberalizing World Food Trade

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  • K. Anderson
  • R. Tyers

Abstract

The common presumption that food‐importing developing countries would be harmed by a liberalization of world food trade is questioned in this paper. Both theory and new empirical modelling evidence suggest the possibility of the opposite conclusion. Even if just advanced industrial countries were to liberalize their food trade, the present empirical analysis (using a model of world food markets) suggests that economic welfare and net foreign exchange earnings from food trade could improve for the vast majority of developing countries. The extent to which that gain would be greater if developing countries also were to liberalize their policies affecting food markets is shown as well. The analysis helps to reconcile differences between previous results using partial‐equilibrium models and those derived from computable general equilibrium models.

Suggested Citation

  • K. Anderson & R. Tyers, 1993. "More On Welfare Gains To Developing Countries From Liberalizing World Food Trade," Journal of Agricultural Economics, Wiley Blackwell, vol. 44(2), pages 189-204, May.
  • Handle: RePEc:bla:jageco:v:44:y:1993:i:2:p:189-204
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    File URL: https://doi.org/10.1111/j.1477-9552.1993.tb00265.x
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    References listed on IDEAS

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    1. Tyers,Rod & Anderson,Kym, 2011. "Disarray in World Food Markets," Cambridge Books, Cambridge University Press, number 9780521172318, July - De.
    2. Tyers, Rod, 1989. "Developing country interests in agricultural trade reform," Agricultural Economics, Blackwell, vol. 3(3), pages 169-186, October.
    3. Anderson, Kym & Tyers, Rod, 1992. "Effects of Gradual Food Policy Reforms in the 1990s," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 19(1), pages 1-24.
    4. Julian M. Alston & Geoff W. Edwards & Professor John W. Freebairn, 1988. "Market Distortions and Benefits from Research," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(2), pages 281-288.
    5. Tyers, Rod & Falvey, Rod, 1989. "Border Price Changes and Domestic Welfare in the Presence of Subsidised Exports," Oxford Economic Papers, Oxford University Press, vol. 41(2), pages 434-451, April.
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    Citations

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    Cited by:

    1. Bernard Hoekman & Kym Anderson, 2000. "Developing-Country Agriculture and the New Trade Agenda," Economic Development and Cultural Change, University of Chicago Press, vol. 49(1), pages 171-180.
    2. Kym Anderson, 2016. "Contributions Of The Gatt/Wto To Global Economic Welfare: Empirical Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 30(1), pages 56-92, February.
    3. PHILIPPIDIS George & Helming John & Tabeau Andrzej, 2017. "Model linkage between CAPRI and MAGNET: An exploratory assessment," JRC Working Papers JRC106595, Joint Research Centre (Seville site).
    4. Oskam, A.J. & Komen, M.H.C. & Wobst, P. & Yalew, A., 2004. "Trade policies and development of less-favoured areas: evidence from the literature," Food Policy, Elsevier, vol. 29(4), pages 445-466, August.
    5. Kym Anderson, 2005. "Agricultural trade reform and poverty reduction in developing countries," Chapters,in: Trade Policy Reforms and Development, chapter 9 Edward Elgar Publishing.
    6. Locke, Christopher G. & Ahmadi-Esfahani, Fredoun Z., 2001. "Debt overhangs and international agricultural trade," Journal of Policy Modeling, Elsevier, vol. 23(2), pages 189-216, February.
    7. Anderson, James E., 1998. "The Uruguay Round and welfare in some distorted agricultural economies," Journal of Development Economics, Elsevier, vol. 56(2), pages 393-410, August.
    8. Anderson, Kym, 2003. "Trade Liberalization, Agriculture, and Poverty in Low-income Countries," WIDER Working Paper Series 025, World Institute for Development Economic Research (UNU-WIDER).
    9. Deodhar, Satish Y., 1999. "WTO Agreements and Indian Agriculture: Retrospection and Prospects," IIMA Working Papers WP1999-11-06, Indian Institute of Management Ahmedabad, Research and Publication Department.
    10. Thomas Giblin & Alan Matthews, 2005. "Global and EU Agricultural Trade Reform: What is in it for Tanzania, Uganda and Sub-Saharan Africia?," The Institute for International Integration Studies Discussion Paper Series iiisdp074, IIIS.
    11. Anderson, Kym, 2000. "Agriculture, Developing Countries, And The WTO Millennium Round," CEPR Discussion Papers 2437, C.E.P.R. Discussion Papers.
    12. Binswanger, Hans P., 2006. "Leonard K. Elmhirst Lecture: Empowering Rural People for Their Own Development," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25713, International Association of Agricultural Economists.
    13. Satish Y Deodhar, 2007. "WTO Agreements and Indian Agriculture: Retrospection and Prospects," Working Papers id:885, eSocialSciences.
    14. Burfisher, Mary E. & Robinson, Sherman & Thierfelder, Karen, 2000. "Small countries and the case for regionalism vs. multilateralism," TMD discussion papers 54, International Food Policy Research Institute (IFPRI).
    15. Sekhar, C. S. C., 2003. "Price formation in world wheat markets -- implications for policy," Journal of Policy Modeling, Elsevier, vol. 25(1), pages 85-106, January.

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