IDEAS home Printed from https://ideas.repec.org/a/bla/rdevec/v10y2006i4p632-651.html
   My bibliography  Save this article

State Trading and Tariff Rate Quotas: The Case of Korea’s Rice Imports

Author

Listed:
  • Jana Hranaiova
  • Harry de Gorter

Abstract

This paper analyzes the effects of trade liberalization of tariff‐rate quotas under import “state trading enterprises” (STEs) in agriculture. An analytical framework is provided to determine the importance of which instrument is binding under competition (the in‐quota or out‐of‐quota tariff or the quota) and under the initial STE equilibrium. It also depends on whether or not the STE controls both the domestic market prices and owns/controls the import quota (and whether it is obligated to fill the quota or not). An empirical example of the rice STE in South Korea has simulations showing that an increase in imports can be achieved through a moderate expansion of the quota or a decrease in the out‐of‐quota tariff to the level where it becomes binding. However, a significant level of quota expansion induces the STE to switch to the autarky solution and social welfare declines.

Suggested Citation

  • Jana Hranaiova & Harry de Gorter, 2006. "State Trading and Tariff Rate Quotas: The Case of Korea’s Rice Imports," Review of Development Economics, Wiley Blackwell, vol. 10(4), pages 632-651, November.
    • Handle: RePEc:bla:rdevec:v:10:y:2006:i:4:p:632-651
    DOI: 10.1111/j.1467-9361.2006.00337.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1467-9361.2006.00337.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1467-9361.2006.00337.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Dixit, Praveen M. & Josling, Timothy E., 1997. "State Trading In Agriculture: An Analytical Framework," Working Papers 14608, International Agricultural Trade Research Consortium.
    2. Ingco, Merlinda & Ng, Francis, 1998. "Distortionary effects of state trading in agriculture : issues for the next round of negotiations," Policy Research Working Paper Series 1915, The World Bank.
    3. Skully, David W., 1999. "The Economics Of Trq Administration," Working Papers 14584, International Agricultural Trade Research Consortium.
    4. Veeman, M. & Fulton, M. & Larue, B., 1999. "International Trade in Agricultural and Food Products: The Role of State Trading Enterprises," Papers 1999, Gouvernement du Canada - Agriculture Canada.
    5. Sexton, Richard J. & Sheldon, Ian M. & McCorriston, Steve & Wang, Humei, 2003. "Analyzing Vertical Market Structure And Its Implications For Trade Liberalization And Market Access," Working Papers 14600, International Agricultural Trade Research Consortium.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Balié, Jean & Valera, Harold Glenn, 2020. "Domestic and international impacts of the rice trade policy reform in the Philippines," Food Policy, Elsevier, vol. 92(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. William W. Wilson & Bruce L. Dahl, 2004. "Transparency and Bidding Competition in International Wheat Trade," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 52(1), pages 89-105, March.
    2. Young, Linda M., 2005. "Export Competition Disciplines in the Doha Round," Trade Issues Papers 14573, International Agricultural Trade Research Consortium.
    3. Yoon, Jung-Hyun & Lim, Song Soo, 2013. "Potential trade distortion effects of state trading enterprises under the tariff-rate quota scheme," Economics Discussion Papers 2013-22, Kiel Institute for the World Economy (IfW Kiel).
    4. Wilson, William W. & Dahl, Bruce L., 2004. "The Section 301 Action And Effects Of The Canadian Wheat Board On U.S. Hard Red Spring And Amber Durum Wheat," Proceedings of the 8th Agricultural and Food Policy Systems Information Workshop, 2002: Keeping the Borders Open 16929, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.
    5. Young, Linda M., 1999. "Prevalence And Reform Of State Trading Importers In World Grain Markets," Research Discussion Papers 29241, Montana State University, Department of Agricultural Economics and Economics, Trade Research Center.
    6. Young, Linda M. & Abbott, Philip C. & Leetmaa, Susan E., 2001. "Export Competition: Issues And Options In The Agricultural Negotiations," Commissioned Papers 14624, International Agricultural Trade Research Consortium.
    7. Hans Binswanger & Ernst Lutz, 2003. "Agricultural trade barriers, trade negotiations and the interests of developing countries," Chapters, in: John Toye (ed.), Trade and Development, chapter 8, Edward Elgar Publishing.
    8. Jeffrey Biggs & Susanna Laaksonen-Craig & Kurt Niquidet & G. Cornelis van Kooten, 2006. "Resolving Canada-US Trade Disputes in Agriculture and Forestry: Lessons from Lumber," Canadian Public Policy, University of Toronto Press, vol. 32(2), pages 143-156, June.
    9. Díaz-Bonilla, Eugenio & Hepburn, Jonathon, 2016. "Export competition issues after Nairobi: The recent World Trade Organization agreements and their implications for developing countries:," IFPRI discussion papers 1557, International Food Policy Research Institute (IFPRI).
    10. David, Cristina C. & Inocencio, Arlene B., 2001. "Assessment of Medium-Term National Action Agenda for Productivity (MNAAP) for the Agriculture Sector," Discussion Papers DP 2001-13, Philippine Institute for Development Studies.
    11. Atanu Ghoshray, 2007. "An Examination of the Relationship Between U.S. and Canadian Durum Wheat Prices," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 55(1), pages 49-62, March.
    12. Jana Hranaiova & Harry de Gorter, 2005. "Rent Seeking with Politically Contestable Rights to Tariff‐rate Import Quotas*," Review of International Economics, Wiley Blackwell, vol. 13(4), pages 805-821, September.
    13. Jean-Philippe Gervais & David Surprenant, 2003. "Evaluating the TRQ Import Licensing Mechanisms in the Canadian Chicken Industry," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 51(2), pages 217-240, July.
    14. Koo, Won W. & Uhm, Ihn H., 2000. "U.S.-Canada Border Disputes In Grains: Dynamic Interface Between The Free Trade Agreement And Trade Remedy Laws," Agricultural Economics Reports 23267, North Dakota State University, Department of Agribusiness and Applied Economics.
    15. Daria Loginova & Marco Portmann & Martin Huber, 2021. "Assessing the Effects of Seasonal Tariff‐rate Quotas on Vegetable Prices in Switzerland," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(2), pages 607-627, June.
    16. Chiedza L. Muchopa, 2021. "Economic Impact of Tariff Rate Quotas and Underfilling: The Case of Canned Fruit Exports from South Africa to the EU," Economies, MDPI, vol. 9(4), pages 1-17, October.
    17. Froese, Marc D., 2010. "Trade Friction, Dispute Settlement and Structural Adjustment, Or, Why Canada-Wheat Doesn’t Matter in North American Trade Relations," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 11(1), pages 1-21, February.
    18. Grant, Jason H. & Hertel, Thomas W. & Rutherford, Thomas F., 2006. "Extending General Equilibrium to the Tariff Line: U.S. Dairy in the Doha Development Agenda," 2006 Annual meeting, July 23-26, Long Beach, CA 21409, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. Marie-Ange VEGANZONES-VAROUDAKIS, 2000. "Market Access, Export Subsidies, Domestic Support and the WTO Negociations: a Review and Synthesis," Working Papers 200008, CERDI.
    20. Dominique van der Mensbrugghe & John C. Beghin & Don Mitchell, 2003. "Modeling Tariff Rate Quotas in a Global Context: The Case of Sugar Markets in OECD Countries," Food and Agricultural Policy Research Institute (FAPRI) Publications (archive only) 03-wp343, Center for Agricultural and Rural Development (CARD) at Iowa State University.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:rdevec:v:10:y:2006:i:4:p:632-651. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1363-6669 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.