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Agricultural Trade Reform and Poverty Reduction in Developing Countries

  • Kym Anderson

    ()

    (School of Economics, University of Adelaide, Australia)

The author offers an economic assessment of the opportunities and challenges provided by the World Trade Organization's Doha Development Agenda, particularly through agricultural trade liberalization, for low-income countries seeking to trade their way out of poverty. After discussing links between poverty, economic growth, and trade, he reports modeling results showing that farm product markets remain the most costly of all goods market distortions in world trade. The author focuses on what such reform might mean for developing countries both with and without their involvement in the multilateral trade negotiations. What becomes clear is that if those countries want to maximize their benefits from the Doha round, they need also to free up their own domestic product and factor markets so their farmers are better able to take advantage of new market opportunities abroad. The author also addresses other concerns of low-income countries about farm trade reform: whether there would be losses associated with tariff preference erosion, whether food-importing countries would suffer from higher food prices in international markets, whether China's WTO accession will provide an example of trade reform aggravating poverty by way of cuts in prices received by Chinese farmers, and the impact on food security and poverty alleviation.

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Paper provided by University of Adelaide, Centre for International Economic Studies in its series Centre for International Economic Studies Working Papers with number 2002-34.

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Length: 29 pages
Date of creation: Nov 2002
Date of revision:
Handle: RePEc:adl:cieswp:2002-34
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  1. Martin, Will & Mitra, Devashish, 2001. "Productivity Growth and Convergence in Agriculture versus Manufacturing," Economic Development and Cultural Change, University of Chicago Press, vol. 49(2), pages 403-22, January.
  2. Hoekman, Bernard & Ng, Francis & Olarreaga, Marcelo, 2001. "Eliminating excessive tariffs on exports of least developed countries," Policy Research Working Paper Series 2604, The World Bank.
  3. Kym Anderson & Shunli Yao, 2003. "China, Gmos And World Trade In Agricultural And Textile Products," Pacific Economic Review, Wiley Blackwell, vol. 8(2), pages 157-169, 06.
  4. Kym Anderson & Lee Ann Jacskon, 2004. "Standards, trade and protection: the case of GMOs," Centre for International Economic Studies Working Papers 2004-11, University of Adelaide, Centre for International Economic Studies.
  5. L. Alan Winters, 2002. "Trade Liberalisation and Poverty: What are the Links?," The World Economy, Wiley Blackwell, vol. 25(9), pages 1339-1367, 09.
  6. Xavier Sala-i-Martin, 2002. "The world distribution of income (estimated from individual country distributions)," Discussion Papers 0102-58, Columbia University, Department of Economics.
  7. Dollar, David & Kraay, Aart, 2002. " Growth Is Good for the Poor," Journal of Economic Growth, Springer, vol. 7(3), pages 195-225, September.
  8. Anderson, Kym & Hoekman, Bernard, 1999. "Developing Country Agriculture and the New Trade Agenda," CEPR Discussion Papers 2096, C.E.P.R. Discussion Papers.
  9. repec:cup:cbooks:9780521351058 is not listed on IDEAS
  10. Ianchovichina, Elena & Martin, William, 2003. "Economic impacts of China's accession to the World Trade Organization," Policy Research Working Paper Series 3053, The World Bank.
  11. Hazell, Peter B. R. & Haddad, Lawrence James, 2001. "Agricultural research and poverty reduction," 2020 vision briefs 70, International Food Policy Research Institute (IFPRI).
  12. Ianchovichina, Elena & Mattoo, Aaditya & Olarreaga, Marcelo, 2001. "Unrestricted market access for Sub-Saharan Africa - How much is it worth and who pays?," Policy Research Working Paper Series 2595, The World Bank.
  13. Martin, W. & Winters, L.A., 1995. "The Uruguay Round and the Developing Countries," World Bank - Discussion Papers 307, World Bank.
  14. Shaohua Chen & Martin Ravallion, 2004. "Welfare Impacts of China's Accession to the World Trade Organization," World Bank Economic Review, World Bank Group, vol. 18(1), pages 29-57.
  15. Hoekman, Bernard & Michalopoulos, Constantine & Schiff, Maurice & Tarr, David, 2001. "Trade policy reform and poverty alleviation," Policy Research Working Paper Series 2733, The World Bank.
  16. Bjornskov, Christian & Lind, Kim Martin, 2002. "Where Do Developing Countries Go After Doha? An analysis of WTO positions and potential alliances," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24915, European Association of Agricultural Economists.
  17. Ruffin, Roy & Jones, Ronald, 1977. "Protection and real wages: The neoclassical ambiguity," Journal of Economic Theory, Elsevier, vol. 14(2), pages 337-348, April.
  18. Beghin, John C. & Roland-Holst, David & Van der Mensbrugghe, Dominique, 2002. "How Will Agricultural Trade Reforms in High-Income Countries Affect the Trading Relationships of Developing Countries?," Staff General Research Papers 10665, Iowa State University, Department of Economics.
  19. L. Alan Winters & Neil McCulloch & Andrew McKay, 2004. "Trade Liberalization and Poverty: The Evidence So Far," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 72-115, March.
  20. K. Anderson & R. Tyers, 1993. "More On Welfare Gains To Developing Countries From Liberalizing World Food Trade," Journal of Agricultural Economics, Wiley Blackwell, vol. 44(2), pages 189-204.
  21. Martin, Will & Mitra, Devashish, 1999. "Productivity growth and convergence in agriculture and manufacturing," Policy Research Working Paper Series 2171, The World Bank.
  22. Grant E. Issac & William A. Kerr, 2003. "Genetically Modified Organisms and Trade Rules: Identifying Important Challenges for the WTO," The World Economy, Wiley Blackwell, vol. 26(1), pages 29-42, January.
  23. L. Alan Winters & Terrie L. Walmsley & Zhen Kun Wang & Roman Grynberg, 2003. "Liberalising Temporary Movement of Natural Persons: An Agenda for the Development Round," The World Economy, Wiley Blackwell, vol. 26(8), pages 1137-1161, 08.
  24. Diao, Xinshen & Somwaru, Agapi & Roe, Terry L., 2001. "A Global Analysis Of Agricultural Trade Reform In Wto Member Countries," Bulletins 12984, University of Minnesota, Economic Development Center.
  25. Anderson, Kym & Yao, Shunli, 2003. "How Can South Asia and Sub-Saharan Africa Gain From the Next WTO Round?," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 18, pages 466-481.
  26. Anderson, Kym & Strutt, Anna, 1999. "Impact Of East Asia’s Growth Interruption and Policy Responses: The Case Of Indonesia," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 125027, Australian Agricultural and Resource Economics Society.
  27. Christopher L. Gilbert & Panos Varangis, 2003. "Globalization and International Commodity Trade with Specific Reference to the West African Cocoa Producers," NBER Working Papers 9668, National Bureau of Economic Research, Inc.
  28. Anderson, Kym, 2000. "Agriculture's 'multifunctionality' and the WTO," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(3), September.
  29. Lloyd, P. J., 1974. "A more general theory of price distortions in open economies," Journal of International Economics, Elsevier, vol. 4(4), pages 365-386, November.
  30. Lloyd, Peter, 2000. "Generalizing the Stolper-Samuelson Theorem: A Tale of Two Matrices," Review of International Economics, Wiley Blackwell, vol. 8(4), pages 597-613, November.
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