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Effects of a Tariff Reduction on Grain Self-Sufficiency: Evidence from Country-Level Panel Data

Author

Listed:
  • Younghyeon Jeon

    () (Korea Rural Economic Institute, Naju 58217, Korea)

  • Byeong-il Ahn

    () (Department of Food and Resource Economics, Korea University, Seoul 02841, Korea)

Abstract

This paper investigates the effects of a tariff reduction on the grain self-sufficiency and the sustainability of domestic grain production. We develop a theoretical model in which trade, tariff, and supply-demand equations are explicitly included, with the classification of food importing and exporting countries. Estimation results based on panel data for 150 countries over 17 years show that the effects of domestic tariff of food-importing countries on the grain self-sufficiency rate (SSR) are positive. This implies that market expansion through tariff reduction will have a negative effect on the importing country’s food SSR and sustainable domestic supply. Using the estimated coefficients on the empirical equations, we derived the elasticities of grain SSR with respect to the tariff rate of food-importing countries. Those are in the ranges of 0.221–0.387.

Suggested Citation

  • Younghyeon Jeon & Byeong-il Ahn, 2017. "Effects of a Tariff Reduction on Grain Self-Sufficiency: Evidence from Country-Level Panel Data," Sustainability, MDPI, Open Access Journal, vol. 9(10), pages 1-14, October.
  • Handle: RePEc:gam:jsusta:v:9:y:2017:i:10:p:1838-:d:114653
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    trade liberalization; tariff reduction; self-sufficiency; system generalized method of moments; sustainable production;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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