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New Indicators of How Much Agricultural Policies Restrict Global Trade

Author

Listed:
  • Kym Anderson

    () (School of Economics, University of Adelaide)

  • Johanna Croser

    () (School of Economics, University of Adelaide)

Abstract

Despite recent reforms, world agricultural markets remain highly distorted by government policies. Traditional indicators of agricultural and food price distortions such as producer and consumer support estimates (PSEs and CSEs) can be poor guides to the policiesÂ’ trade effects. Two recent studies provide much better indicators of trade- (and welfare-)reducing effects of farm price and trade policies, but they provide somewhat differing numbers. This paper explains why those estimates differ and how they might be improved for use in on-going annual monitoring of the trade restrictiveness of agricultural policies in both high-incmoe and developing countries.

Suggested Citation

  • Kym Anderson & Johanna Croser, 2010. "New Indicators of How Much Agricultural Policies Restrict Global Trade," Centre for International Economic Studies Working Papers 2010-08, University of Adelaide, Centre for International Economic Studies.
  • Handle: RePEc:adl:cieswp:2010-08
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    File URL: http://www.adelaide.edu.au/cies/papers/Discussion_Paper1008.pdf
    File Function: First version, 2010
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    More about this item

    Keywords

    Agricultural policies; trade restrictiveness indexes; food price distortions;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • 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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