Reforming Hungarian agricultural trade policy: A quantitative evaluation
The authors quantitatively assess the consequences of Hungary for three types of policies: removing quantitative import restraints in agriculture, both for all of agriculture and for each of five separate agricultural products; removing the export subsidy program in agriculture; and adopting a European Community type common agricultural policy (CAP) system in Hungary. The authors estimate the consequences of all policies by using a small open economy computable general equilibrium model for Hungary, calibrated to the year 1990. They estimate the tariff equivalent of the import licenses through a detailed study of price comparisons, the first of itskind for Hungary. Imposing a CAP system they find, would be a costly step backward for Hungary, especially as the long run trend in Hungarian agricultural policy has been toward less intervention and more reliance on the market. A CAP system would significantly increase the government's fiscal problems. Import protection and export subsidies are costly, inefficient policies. The most important policy conclusion they contend, has to do with the piecemeal sequencing of reforms in the presence of both export subsidies and import licenses. Removing import licenses while export subsidies remain would generate byproduct distortions in the export market and little gain in welfare. The piecemeal removal of export subsidies, however, would not generate byproduct distortion, so substantial gains could be expected - but at the expense of greater adjustment costs. To facilitate understanding of this commonly used type of general equilibrium model, the authors explain the results by using supply and demand style graphs of the agricultural sector.
(This abstract was borrowed from another version of this item.)
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 131 (1995)
Issue (Month): 1 (March)
|Contact details of provider:|| Postal: |
Phone: +49 431 8814-1
Fax: +49 431 8814528
Web page: http://link.springer.de/link/service/journals/10290/index.htm
More information through EDIRC
|Order Information:||Web: http://link.springer.de/orders.htm|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Trela, Irene & Whalley, John & Wigle, Randall, 1987. " International Trade in Grains: Domestic Policies and Trade Impacts," Scandinavian Journal of Economics, Wiley Blackwell, vol. 89(3), pages 271-83.
- Tarr, David, 1990. "Quantifying second best effects in grossly distorted markets: The case of the butter market in Poland," Journal of Comparative Economics, Elsevier, vol. 14(1), pages 105-119, March.
- Oblath, Gabor & Tarr, David, 1992.
"The terms-of-trade effects from the elimination of state trading in Soviet-Hungarian trade,"
Journal of Comparative Economics,
Elsevier, vol. 16(1), pages 75-93, March.
- Oblath, Gabor & Tarr, David, 1991. "The terms-of-trade effects from the elimination of state trading in Soviet - Hungarian trade," Policy Research Working Paper Series 690, The World Bank.
- de Melo, Jaime & Tarr, David, 1990.
"Welfare Costs of U.S. Quotas in Textiles, Steel and Autos,"
The Review of Economics and Statistics,
MIT Press, vol. 72(3), pages 489-97, August.
- de Melo, Jaime & Tarr, David, 1990. "Welfare Costs of US Quotas in Textiles, Steel and Autos," CEPR Discussion Papers 401, C.E.P.R. Discussion Papers.
- de Melo, Jaime & Tarr, David, 1988. "Welfare costs of U.S. quotas on textiles, steel, and autos," Policy Research Working Paper Series 83, The World Bank.
- Melo, J. de & Tarr, D., 1993.
"Industrial Policy in the Presence of Wage Distorsions: The Case of the US Auto and Steel Industries,"
Research Papers by the Institute of Economics and Econometrics, Geneva School of Economics and Management, University of Geneva
93.17, Institut d'Economie et Econométrie, Université de Genève.
- de Melo, Jaime & Tarr, David, 1993. "Industrial Policy in the Presence of Wage Distortions: The Case of the U.S. Auto and Steel Industries," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 34(4), pages 833-51, November.
- de Melo, Jaime & Tarr, David, 1990. "Industrial Policy in the Presence of Wage Distortion: The Case of the US Auto and Steel Industries," CEPR Discussion Papers 435, C.E.P.R. Discussion Papers.
- Harberger, Arnold C, 1971. "Three Basic Postulates for Applied Welfare Economics: An Interpretive Essay," Journal of Economic Literature, American Economic Association, vol. 9(3), pages 785-97, September.
- Trela, Irene & Whalley, John, 1990. "Global Effects of Developed Country Trade Restrictions on Textiles and Apparel," Economic Journal, Royal Economic Society, vol. 100(403), pages 1190-1205, December.
- Harrison, Glenn W. & Rutherford, Thomas F. & Tarr, David G., 1992. "Piecemeal trade reform in partially liberalized economies : an evaluation for Turkey," Policy Research Working Paper Series 951, The World Bank.
When requesting a correction, please mention this item's handle: RePEc:spr:weltar:v:131:y:1995:i:1:p:106-131. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Christopher F Baum)
If references are entirely missing, you can add them using this form.