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The Uruguay Round and welfare in some distorted agricultural economies

  • Anderson, James E.

There is widespread concern about the effect of the Uruguay Round policy changes on world agricultural prices and consequently upon the welfare of developing countries. Assessing welfare changes with the standard terms of trade effect calculation can be misleading for distorted economies, since the distortion effect operates in addition or in opposition to the terms of trade effect. This study reveals distortion effects which are many times larger than terms of trade effects in a study of the Uruguay Round's impact on 9 agricultural economies. In 3 of 9 cases, the distortion effect reverses the impact of the terms of trade effect. In 2 other cases the distortion effect raises a trivial terms of trade effect up to around 1% of national income.

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Article provided by Elsevier in its journal Journal of Development Economics.

Volume (Year): 56 (1998)
Issue (Month): 2 (August)
Pages: 393-410

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Handle: RePEc:eee:deveco:v:56:y:1998:i:2:p:393-410
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  1. James Anderson, 1995. "Trade Restrictiveness Benchmarks," Boston College Working Papers in Economics 290., Boston College Department of Economics.
  2. Lopez, Ramon & Panagariya, Arvind, 1992. "On the Theory of Piecemeal Tariff Reform: The Case of Pure Imported Intermediate Inputs," American Economic Review, American Economic Association, vol. 82(3), pages 615-25, June.
  3. 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.
  4. Alston, Julian M & Martin, Will, 1995. "Border Price Changes and Domestic Welfare in the Presence of Distortions: A Comment," Oxford Economic Papers, Oxford University Press, vol. 47(1), pages 79-82, January.
  5. Anderson, James E. & Neary, J. Peter, 1993. "Domestic distortions and international trade," Policy Research Working Paper Series 1163, The World Bank.
  6. J Anderson & J.P. Neary, 1994. "Measuring the Restrictiveness of Trade Policy," CEP Discussion Papers dp0186, Centre for Economic Performance, LSE.
  7. J. P. Neary (ed.), 1995. "International Trade," Books, Edward Elgar, volume 0, number 575.
  8. repec:oup:restud:v:63:y:1996:i:1:p:107-25 is not listed on IDEAS
  9. 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 434-51, April.
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