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Measuring Agricultural Policy Bias: General Equilibrium Analysis of Fifteen Developing Countries

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  • Henning Tarp Jensen
  • Sherman Robinson
  • Finn Tarp

Abstract

Measurement is a key issue in the literature on price incentive bias induced by trade policy. We introduce a general equilibrium measure of the relative effective rate of protection, which generalizes earlier protection measures. For our fifteen sample countries, results indicate that the agricultural price incentive bias generally perceived to exist during the 1980s was largely eliminated during the 1990s. Results also demonstrate that general equilibrium effects and country-specific characteristics are crucial for determining the sign and magnitude of agricultural bias. Our comprehensive protection measure is therefore uniquely suited to capture the full impact of trade policies on relative agricultural price incentives. Copyright 2010, Oxford University Press.

Suggested Citation

  • Henning Tarp Jensen & Sherman Robinson & Finn Tarp, 2010. "Measuring Agricultural Policy Bias: General Equilibrium Analysis of Fifteen Developing Countries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(4), pages 1136-1148.
    • Handle: RePEc:oup:ajagec:v:92:y:2010:i:4:p:1136-1148
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    File URL: http://hdl.handle.net/10.1093/ajae/aaq043
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    Cited by:

    1. Emiko Fukase & Will Martin, 2016. "Agro-processing and horticultural exports from Africa," WIDER Working Paper Series wp-2016-174, World Institute for Development Economic Research (UNU-WIDER).
    2. Emiko Fukase & Will Martin, 2016. "Agro-processing and horticultural exports from Africa," WIDER Working Paper Series 174, World Institute for Development Economic Research (UNU-WIDER).
    3. Kym Anderson, 2013. "Agricultural price distortions: trends and volatility, past, and prospective," Agricultural Economics, International Association of Agricultural Economists, vol. 44(s1), pages 163-171, November.
    4. Tony Addison, 2017. "Thirty years in Africa’s development: from structural adjustment to structural transformation?," Chapters, in: Peter A.G. van Bergeijk & Rolph van der Hoeven (ed.), Sustainable Development Goals and Income Inequality, chapter 7, pages 121-140, Edward Elgar Publishing.
    5. Ranjit Kumar & K. V. Raju, 2018. "Leveraging Policies for Self Sufficiency in Pulses in India," Journal of Development Policy and Practice, , vol. 3(2), pages 155-178, July.
    6. Tony Addison, 2015. "Thirty years in Africa's development: From structural adjustment to structural transformation?," WIDER Working Paper Series 119, World Institute for Development Economic Research (UNU-WIDER).
    7. Cardoso, Debora Freire & Teixeira, Erly Cardoso & Gurgel, Angelo Costa & Castro, Eduardo Rodrigues de, 2011. "Effects of the rural credit subsidy on economic growth and welfare of Brazilian regions," Working Papers in Applied Economics 114464, Universidade Federal de Vicosa, Departamento de Economia Rural.
    8. Andy McKay & Finn Tarp, 2014. "Distributional Impacts of the 2008 Global Food Price Spike in Vietnam," WIDER Working Paper Series wp-2014-030, World Institute for Development Economic Research (UNU-WIDER).
    9. McKay, Andy & Tarp, Finn, 2014. "Distributional impacts of the 2008 global food price spike in Vietnam," WIDER Working Paper Series 030, World Institute for Development Economic Research (UNU-WIDER).
    10. Douillet, Mathilde, 2012. "Trade policy reforms in the new agricultural context: Is regional integration a priority for Sub-Saharan African countries agricultural-led industrialization? Insights from a global computable general equilibrium analysis," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126546, International Association of Agricultural Economists.
    11. Devarajan, Shantayanan & Robinson, Sherman, 2013. "Contribution of Computable General Equilibrium Modeling to Policy Formulation in Developing Countries," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 277-301, Elsevier.

    More about this item

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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