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Agricultural and Trade Policy Reforms in Latin America: Impacts on Markets and Welfare

Author

Listed:
  • Kym Anderson

    () (School of Economics, University of Adelaide)

  • Ernesto Valenzuela

    () (School of Economics, University of Adelaide)

Abstract

Farm earnings in Latin America have been depressed by pro-urban and anti-trade biases in national policies and by agricultural support policies of richer countries. These policies have reduced economic welfare, hampered trade and growth, and may well have added to income inequality. Since the 1980s, however, the region has reduced its sectoral and trade policy distortions; and some high-income countries also have begun reducing market-distorting aspects of their farm policies. This paper synthesizes results from a World Bank project that provides: price-comparison based measures of the extent to which national policies have changed farmersÂ’ price incentives; partial equilibrium indexes of the impact of farm policies on trade and economic welfare; general equilibrium estimates of trade, welfare and poverty effects of global reforms retrospectively and prospectively; comparisons with similar estimates for Asia, Africa and high-income countries; and a discussion of prospects for pro-poor policy reform of agricultural price and trade policies.

Suggested Citation

  • Kym Anderson & Ernesto Valenzuela, 2010. "Agricultural and Trade Policy Reforms in Latin America: Impacts on Markets and Welfare," Centre for International Economic Studies Working Papers 2010-01, University of Adelaide, Centre for International Economic Studies.
  • Handle: RePEc:adl:cieswp:2010-01
    as

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    File URL: http://www.adelaide.edu.au/cies/papers/Discussion_Paper1001.pdf
    File Function: First version, 2010
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    References listed on IDEAS

    as
    1. L. ALAN WINTERS & NEIL McCULLOCH & ANDREW McKAY, 2015. "Trade Liberalization and Poverty: The Evidence So Far," World Scientific Book Chapters,in: Non-Tariff Barriers, Regionalism and Poverty Essays in Applied International Trade Analysis, chapter 14, pages 271-314 World Scientific Publishing Co. Pte. Ltd..
    2. 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.
    3. Anderson, Kym & Croser, Johanna L. & Lloyd, Peter J, 2009. "Global Distortions to Agricultural Markets: New Indicators of Trade and Welfare Impacts, 1955 to 2007," CEPR Discussion Papers 7160, C.E.P.R. Discussion Papers.
    4. Kym Anderson, 2010. "Krueger, Schiff, and Valdés Revisited: Agricultural Price and Trade Policy Reform in Developing Countries since 1960," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 32(2), pages 195-231.
    5. James E. Anderson & J. Peter Neary, 2005. "Measuring the Restrictiveness of International Trade Policy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262012200, January.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Nin-Prat, Alejandro & Falconi, Cesar & Ludena, Carlos & Martel, Pedro, 2015. "Productivity and the Performance of Agriculture in Latin America and the Caribbean: From the Lost Decade to the Commodity Boom," 2015 Conference, August 9-14, 2015, Milan, Italy 211725, International Association of Agricultural Economists.
    2. Alejandro Nin Pratt & César Falconi & Carlos E. Ludeña & Pedro Martel, 2015. "Productivity and the Performance of Agriculture in Latin America and the Caribbean: From the Lost Decade to the Commodity Boom," IDB Publications (Working Papers) 7306, Inter-American Development Bank.

    More about this item

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • 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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