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Regional effects of liberalized agricultural trade

  • Fiona D. Sigalla

Fiona D. Sigalla explores the impact of free international trade in agriculture on individual states and the components of their agricultural sectors. Full multilateral trade liberalization would lower the cost of food and increase gross national product by encouraging reallocation of resources to more productive uses, Sigalla argues. She finds that free trade would have little or no effect on income in six states and that gross agricultural income would rise in six other states. Agricultural income would decline by 7 percent or more in fourteen states and by at least 2 percent in the remaining twenty-four states. ; She concludes that trade liberalization would reduce agricultural income in most states, but the small size of the agricultural sector would lead to relatively small income losses that could be offset by gains in other sectors of the economy.

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Article provided by Federal Reserve Bank of Dallas in its journal Economic and Financial Policy Review.

Volume (Year): (1992)
Issue (Month): Q II ()
Pages: 43-54

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Handle: RePEc:fip:fedder:y:1992:i:qii:p:43-54
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