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Agricultural trade distortions during the global financial crisis

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  • Kym Anderson
  • Signe Nelgen

Abstract

Import barriers are often raised during turbulent times, as governments worry about immediate domestic concerns such as unemployment. The recent global financial crisis, however, was accompanied by an exogenous upward spike in the international price of food, which led some countries to raise export barriers, thereby exacerbating both the price spike and the international welfare transfer associated with that change in the terms of trade. As in previous price-spike periods, that response by some food-exporting countries was accompanied by a lowering of import restrictions by numerous food-importing countries, further exacerbating the international price spike. This paper provides new evidence up to 2010 on the extent of the change in domestic relative to international prices in both groups of countries, and compares it with responses during two previous food price-spike periods. It concludes that there is a need for stronger World Trade Organization disciplines on export as well as import restrictions, so as to limit the extent to which beggar-thy-neighbour government responses to international price spikes (up or down) exacerbate those shocks. Copyright 2012, Oxford University Press.

Suggested Citation

  • Kym Anderson & Signe Nelgen, 2012. "Agricultural trade distortions during the global financial crisis," Oxford Review of Economic Policy, Oxford University Press, vol. 28(2), pages 235-260, SUMMER.
  • Handle: RePEc:oup:oxford:v:28:y:2012:i:2:p:235-260
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    File URL: http://hdl.handle.net/10.1093/oxrep/grs001
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    Cited by:

    1. Götz, Linde & Goychuk, Kateryna & Glauben, Thomas & Meyers, William H., 2013. "Export Restrictions and Market Uncertainty: Evidence from the Analysis of Price Volatility in the Ukrainian Wheat Market," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150308, Agricultural and Applied Economics Association.
    2. Magrini, Emiliano & Montalbano, Pierluigi & Nenci, Silvia & Salvatici, Luca, 2014. "Agricultural trade distortions during recent international price spikes: what implications for food security?," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182726, European Association of Agricultural Economists.
    3. Elleby, Christian, 2014. "Poverty and Price Transmission," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182722, European Association of Agricultural Economists.
    4. Wenshou Yan, 2016. "Political Economy of Trade and Storage Policies Coordination, and the Role of Domestic Public Storage in the World Market," School of Economics Working Papers 2016-16, University of Adelaide, School of Economics.
    5. Kym Anderson & Maros Ivanic & William J. Martin, 2014. "Food Price Spikes, Price Insulation, and Poverty," NBER Chapters,in: The Economics of Food Price Volatility, pages 311-339 National Bureau of Economic Research, Inc.
    6. Knops, Louise & van Herck, Kristine & Swinnen, Johan F. M., 2013. "Food Price Volatility and EU Policies," WIDER Working Paper Series 032, World Institute for Development Economic Research (UNU-WIDER).
    7. Götz, Linde & Qiu, Feng & Gervais, Jean-Philippe & Glauben, Thomas, 2013. "Export Restrictions and Multiple Spatial Price Equilibria: Export Quotas for Wheat in Ukraine," 53rd Annual Conference, Berlin, Germany, September 25-27, 2013 156135, German Association of Agricultural Economists (GEWISOLA).
    8. repec:eee:jfpoli:v:71:y:2017:i:c:p:17-26 is not listed on IDEAS
    9. Guy M. Robinson & Doris A. Carson, 2015. "The globalisation of agriculture: introducing the Handbook," Chapters,in: Handbook on the Globalisation of Agriculture, chapter 1, pages 1-28 Edward Elgar Publishing.
    10. Njindan Iyke, Bernard & Ho, Sin-Yu, 2017. "Trade Openness and Carbon Emissions: Evidence from Central and Eastern Europe," MPRA Paper 80399, University Library of Munich, Germany.
    11. Linde Götz & Feng Qiu & Jean-Philippe Gervais & Thomas Glauben, 2016. "Export Restrictions and Smooth Transition Cointegration: Export Quotas for Wheat in Ukraine," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(2), pages 398-419, June.
    12. repec:oup:wbecrv:v:31:y:2017:i:1:p:158-175. is not listed on IDEAS
    13. Hans G. Jensen & Kym Anderson, 2017. "Grain Price Spikes and Beggar-thy-Neighbor Policy Responses: A Global Economywide Analysis," World Bank Economic Review, World Bank Group, vol. 31(1), pages 158-175.
    14. repec:oup:ajagec:v:99:y:2017:i:4:p:847-871. is not listed on IDEAS
    15. Christophe Gouel, 2013. "Rules versus Discretion in Food Storage Policies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(4), pages 1029-1044.
    16. Anderson, Kym & Thennakoon, Jayanthi, 2015. "Food Prices Spikes and Poor, Small Economies: What Role for Trade Policies," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 10(1), March.
    17. Gotz, Linde & Qiu, Feng & Gervais, Jean-Philippe & Glauben, Thomas, 2012. "Export Restrictions And Multiple Spatial Price Equilibria When International Prices Spike: Export Quotas For Wheat In Ukraine," 2012: New Rules of Trade?, December 2012, San Diego, California 143179, International Agricultural Trade Research Consortium.

    More about this item

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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