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Trade Barrier Volatility and Agricultural Price Stabilization

Author

Listed:
  • Kym Anderson

    (School of Economics, University of Adelaide, Australia)

  • Signe Nelgen

    (School of Economics, University of Adelaide, Australia)

Abstract

National barriers to trade are often varied to insulate domestic markets from international price variability. This paper explores the extent of that behavior by governments using estimates of agricultural price distortions in 75 countries. Newly estimated price transmission elasticities are quite low, albeit slightly higher since than before 1985. In the case of extreme upward price spikes, trade policy responses by food importers are as substantial as those of exporting countries. The domestic price-stabilizing effect of intervention by each group is thereby weakened by the other groupÂ’s response, suggesting more-effective domestic policy options need to be considered instead of varying trade barriers.

Suggested Citation

  • Kym Anderson & Signe Nelgen, 2010. "Trade Barrier Volatility and Agricultural Price Stabilization," Centre for International Economic Studies Working Papers 2010-16, University of Adelaide, Centre for International Economic Studies.
  • Handle: RePEc:adl:cieswp:2010-16
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    File URL: http://www.adelaide.edu.au/cies/publications/present/CIES_DP1016.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Commodity price stabilization; Price transmission; Domestic market insulation; Distorted incentives; Agricultural trade policies;
    All these keywords.

    JEL classification:

    • 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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