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Agricultural Price Distortions, Inequality, and Poverty


  • Kym Anderson
  • John Cockburn
  • Will Martin


For decades, the earnings from farming in many developing countries have been depressed because of a pro-urban, anti-agricultural bias in own-country policies and because governments in more well off countries are favoring their farmers by imposing import barriers and providing subsidies. These policies have reduced national and global economic welfare, inhibited economic growth, and added to inequality and poverty because no less than three-quarters of the billion poorest people in the world have been dependent directly or indirectly on farming for their livelihoods (World Bank 2007). The purpose of the rest of this chapter is to outline the analytical framework and the common empirical methodology adopted in the global and national case studies reported in subsequent chapters, to summarize and compare the modeling results from the global and national models, and to draw some general policy implications. The findings are based on three chapters (part two) that each use a global model to examine the effects of farm and nonfarm price and trade policies on global poverty and the distribution of poverty within and across many of the countries identified, plus ten individual developing-country studies (parts three-five) spanning the three key regions: Asia (where nearly two-thirds of the world's poor live), Sub-Saharan Africa, and Latin America.

Suggested Citation

  • Kym Anderson & John Cockburn & Will Martin, 2010. "Agricultural Price Distortions, Inequality, and Poverty," World Bank Publications, The World Bank, number 2430, March.
  • Handle: RePEc:wbk:wbpubs:2430

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    References listed on IDEAS

    1. Keeney, Roman & Thomas Hertel, 2005. "GTAP-AGR : A Framework for Assessing the Implications of Multilateral Changes in Agricultural Policies," GTAP Technical Papers 1869, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
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    Cited by:

    1. Kym Anderson & Gordon Rausser & Johan Swinnen, 2013. "Political Economy of Public Policies: Insights from Distortions to Agricultural and Food Markets," Journal of Economic Literature, American Economic Association, vol. 51(2), pages 423-477, June.
    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. Woldu, Thomas & Abebe, Girum & Lamoot, Indra & Minten, Bart, 2013. "Urban food retail in Africa: The case of Addis Ababa, Ethiopia," ESSP working papers 50, International Food Policy Research Institute (IFPRI).
    4. Anderson, Kym, 2009. "Krueger/Schiff/Valdés Revisited: Agricultural Price and Trade Policy Reform in Developing Countries since 1960," CEPR Discussion Papers 7601, C.E.P.R. Discussion Papers.
    5. Laborde Debucquet, David & Martin, Will, 2016. "Implications of slowing growth in emerging market economies for hunger and poverty in rural areas of developing countries:," IFPRI discussion papers 1554, International Food Policy Research Institute (IFPRI).
    6. Martin, Will, 2017. "Agricultural Trade and Food Security," ADBI Working Papers 664, Asian Development Bank Institute.
    7. World Bank [WB], 2016. "High and Dry : Climate Change, Water, and the Economy," Working Papers id:10736, eSocialSciences.
    8. 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.
    9. Kym Anderson & Will Martin, 2009. "Distortions to Agricultural Incentives in Asia," World Bank Publications, The World Bank, number 2611.
    10. Anderson, Kym & Nelgen, Signe, 2012. "Trade Barrier Volatility and Agricultural Price Stabilization," World Development, Elsevier, vol. 40(1), pages 36-48.
    11. Fukase,Emiko & Martin,William J., 2015. "Economic implications of a potential free trade agreement between India and the United States," Policy Research Working Paper Series 7212, The World Bank.
    12. Kleinwechter, Ulrich & Grethe, Harald, 2011. "Trade reform, migration, and a Chinese village economy," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114753, European Association of Agricultural Economists.
    13. Mathilde Douillet, 2012. "Trade policies and agriculture in Sub-Saharan Africa: Comparative analysis in a Computable General Equilibrium framework," Sciences Po publications info:hdl:2441/45eb019724s, Sciences Po.
    14. Souleymane Soumahoro, 2014. "Export Taxes and Consumption: A ‘Natural Experiment’ from Côte d'Ivoire," HiCN Working Papers 182, Households in Conflict Network.
    15. Maurizio Bussolo & Rafael E De Hoyos & Denis Medvedev, 2010. "Economic growth and income distribution: linking macro-economic models with household survey data at the global level," International Journal of Microsimulation, International Microsimulation Association, vol. 3(1), pages 92-103.
    16. repec:oup:ajagec:v:99:y:2017:i:4:p:847-871. is not listed on IDEAS
    17. repec:spo:wpecon:info:hdl:2441/45eb019724sn6sg9melpggksl is not listed on IDEAS
    18. Hamade, Kanj & Malorgio, Giulio & Midmore, Peter, 2011. "Combining Quantitative And Qualitative Approaches To Rural Development Analysis: The Case Of Agricultural Intensification In Lebanon," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108960, Agricultural Economics Society.
    19. Kosack, Stephen & Tobin, Jennifer L., 2015. "Which Countries’ Citizens Are Better Off With Trade?," World Development, Elsevier, vol. 76(C), pages 95-113.
    20. Devarajan, Shantayanan & Robinson, Sherman, 2013. "Contribution of Computable General Equilibrium Modeling to Policy Formulation in Developing Countries," Handbook of Computable General Equilibrium Modeling, Elsevier.

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