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Deregulation as (Welfare Reducing) Trade Reform: the Case of the Australian Wheat Board

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  • Steve McCorriston
  • Donald MacLaren

Abstract

State trading enterprises are distinguishable from private, commercial firms by the nature of their exclusive rights and objectives. Deregulation of the Australian Wheat Board is used to illustrate the effects of these rights and objectives on trade and welfare. Theoretical models are specified and the effects measured through calibrated, partial equilibrium models. It was found that the successive deregulations of the Australian Wheat Board caused it to switch from being equivalent to an export subsidy to, today, being equivalent to an export tax. At the same time, deregulation has not necessarily been welfare enhancing. Copyright 2007, Oxford University Press.

Suggested Citation

  • Steve McCorriston & Donald MacLaren, 2007. "Deregulation as (Welfare Reducing) Trade Reform: the Case of the Australian Wheat Board," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(3), pages 637-650.
    • Handle: RePEc:oup:ajagec:v:89:y:2007:i:3:p:637-650
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    File URL: http://hdl.handle.net/10.1111/j.1467-8276.2007.00985.x
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    Citations

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    Cited by:

    1. Suphanit Piyapromdee & Russell Hillberry & Donald MacLaren, 2014. "‘Fair trade’ coffee and the mitigation of local oligopsony power," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 41(4), pages 537-559.
    2. MacLaren, Donald & McCorriston, Steve, 2007. "An Assessment of the Economic Effects of COFCO," 2007: China's Agricultural Trade: Issues and Prospects Symposium, July 2007, Beijing, China 55026, International Agricultural Trade Research Consortium.
    3. Soregaroli, Claudio & Sckokai, Paolo, 2011. "Modelling Agricultural Commodity Markets under Imperfect Competition," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 116012, European Association of Agricultural Economists.
    4. Patrick O’Keeffe, 2018. "Creating a governable reality: analysing the use of quantification in shaping Australian wheat marketing policy," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 35(3), pages 553-567, September.
    5. Steve McCorriston & Donald MacLaren, 2010. "The Trade and Welfare Effects of State Trading in China with Reference to COFCO," The World Economy, Wiley Blackwell, vol. 33(4), pages 615-632, April.
    6. Colin A. Carter & Shon M. Ferguson, 2019. "Deregulation and regional specialization: Evidence from Canadian agriculture," Canadian Journal of Economics, Canadian Economics Association, vol. 52(4), pages 1497-1522, November.
    7. Kingwell, Ross S., 2011. "Managing complexity in modern farming," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(1), pages 1-23.

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