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International Trade Policies Affecting Agricultural Incentives in Developing Countries

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  • Kym Anderson

    () (School of Economics, University of Adelaide)

Abstract

For decades, earnings from farming in many developing countries have been depressed by a pro-urban bias in own-country policies, as well as by governments of richer countries favoring their farmers with import barriers and subsidies. Both sets of policies reduce national and global economic welfare and inhibit economic growth. In particular, they add to inequality and poverty in developing countries, since three-quarters of the world's billion poorest people depend directly or indirectly on farming for their livelihood. During the past two decades, however, numerous developing country governments have reduced their sectoral and trade policy distortions, while some high-income countries also have begun reforming their protectionist farm policies. This chapter surveys the changing extent of policy distortions to prices faced by developing country farmers. After outlining the basic measurement theory, the chapter provides a brief history of policies of advanced and developing economies and then surveys empirical studies that document the changing extent of price distortions over the past half century. It reviews the economic effects of policy reforms since the early 1980s and of interventions remaining in the early part of the present century, according to global economy wide modeling results. The chapter concludes by pointing to the scope and prospects for further pro-poor policy reform at home and abroad.

Suggested Citation

  • Kym Anderson, 2009. "International Trade Policies Affecting Agricultural Incentives in Developing Countries," School of Economics Working Papers 2009-08, University of Adelaide, School of Economics.
  • Handle: RePEc:adl:wpaper:2009-08
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    File URL: http://www.economics.adelaide.edu.au/research/papers/doc/wp2009-08.pdf
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    References listed on IDEAS

    as
    1. Jaime de MELO & Sherman ROBINSON, 2015. "Product Differentiation And The Treatment Of Foreign Trade In Computable General Equilibrium Models Of Small Economies," World Scientific Book Chapters,in: Modeling Developing Countries' Policies in General Equilibrium, chapter 2, pages 21-41 World Scientific Publishing Co. Pte. Ltd..
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    Cited by:

    1. Tedesco, Ilaria & Pelloni, Alessandra & Trovato, Giovanni, 0. "Oecd Agricultural Subsidies And Poverty Rates In Lower Income Countries," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 3.
    2. repec:wei:journl:v:7:y:2017:i:2:p:72-87 is not listed on IDEAS
    3. Bakari, Sayef, 2017. "The Impact of Citrus Exports on Economic Growth: Empirical Analysis from Tunisia," MPRA Paper 82414, University Library of Munich, Germany.
    4. Sayef Bakari, 2017. "The Impact of Vegetables Exports on Economic Growth in Tunisia," Economic Research Guardian, Weissberg Publishing, vol. 7(2), pages 72-87, December.

    More about this item

    Keywords

    distorted incentives; agricultural and trade policy reforms;

    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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