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Trade and Welfare Effects of State Trading Enterprises


  • McCorriston, Steve
  • MacLaren, Donald


Much of the analysis of market access issues in the Doha Round negotiations involves clearly defined instruments of government policy covering inter alia subsidies, tariffs and tariff rate quotas. State trading enterprises are also on the negotiating agenda though there is comparatively little analysis of their impact on trade and welfare despite the fact that they will be addressed in the forthcoming negotiations. This paper addresses these issues and highlights that STEs both distort trade and reduce welfare. The extent of these effects depend not only on the monopoly/monopsony status of the enterprises but the nature of the pay-off function.

Suggested Citation

  • McCorriston, Steve & MacLaren, Donald, 2005. "Trade and Welfare Effects of State Trading Enterprises," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24523, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaae05:24523

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    Cited by:

    1. Hoekman, Bernard & Martin, Will, 2012. "Reducing distortions in international commodity markets : an agenda for multilateral cooperation," Policy Research Working Paper Series 5928, The World Bank.
    2. Philippidis, George & Hubbard, Lionel J. & Renwick, Alan W., 2006. "A CGE Analysis of the Harbinson Proposal: Outcomes for the EU25," Working Papers 45992, Scotland's Rural College (formerly Scottish Agricultural College), Land Economy & Environment Research Group.

    More about this item


    state trading enterprises; trade negotiations; International Relations/Trade; F12; F13; Q17;

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade


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