IDEAS home Printed from https://ideas.repec.org/p/ags/iaae03/25849.html
   My bibliography  Save this paper

May The Pro-Poor Impacts Of Trade Liberalization Vanish Because Of Imperfect Information ?

Author

Listed:
  • Boussard, Jean-Marc
  • Gerard, Francoise
  • Piketty, Marie-Gabrielle
  • Christensen, Ane-Katrine
  • Voituriez, Tancrede

Abstract

In this paper, we try to evaluate the change in welfare gains and their distribution due to trade liberalization when imperfect information is considered. The results of two versions of a computable general equilibrium (CGE) model, using GTAP database and representing goods as well as capital flows, are compared. In the first one, a standard world CGE approach is followed. In the second version we include risk aversion, imperfect information and production lag in the agricultural sector. After a brief description of the two versions, changes in welfare, represented by the income of two types of household (middle-low and middle-high) in three regions (Europe, United States, Rest of the World) after agricultural trade liberalization are presented. Theoretical and political consequences of the results are discussed.

Suggested Citation

  • Boussard, Jean-Marc & Gerard, Francoise & Piketty, Marie-Gabrielle & Christensen, Ane-Katrine & Voituriez, Tancrede, 2003. "May The Pro-Poor Impacts Of Trade Liberalization Vanish Because Of Imperfect Information ?," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25849, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae03:25849
    DOI: 10.22004/ag.econ.25849
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/25849/files/cp03bo03.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.25849?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Tyers,Rod & Anderson,Kym, 2011. "Disarray in World Food Markets," Cambridge Books, Cambridge University Press, number 9780521172318, October.
    2. Stiglitz, Joseph E., 2000. "Capital Market Liberalization, Economic Growth, and Instability," World Development, Elsevier, vol. 28(6), pages 1075-1086, June.
    3. Marc Nerlove, 1979. "The Dynamics of Supply: Retrospect and Prospect," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(5), pages 874-888.
    4. Mandelbrot, Benoit B, 1971. "When Can Price Be Arbitraged Efficiently? A Limit to the Validity of the Random Walk and Martingale Models," The Review of Economics and Statistics, MIT Press, vol. 53(3), pages 225-236, August.
    5. Hertel, Thomas W. & Preckel, Paul V. & Reimer, Jeffrey J., 2001. "Trade Policy, Food Price Variability, And The Vulnerability Of Low-Income Households," 2001 Annual meeting, August 5-8, Chicago, IL 20692, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Thomas W. Hertel & Will Martin, 2000. "Liberalising Agriculture and Manufactures in a Millennium Round:Implications for Developing Countries," The World Economy, Wiley Blackwell, vol. 23(04), pages 455-469, April.
    7. Anderson, Kym, 2000. "Agriculture, Developing Countries, And The WTO Millennium Round," CEPR Discussion Papers 2437, C.E.P.R. Discussion Papers.
    8. A. Ya. Zaporozhan, 2021. "Economic Stability and (or) Economic Growth," Administrative Consulting, Russian Presidential Academy of National Economy and Public Administration. North-West Institute of Management., issue 11.
    9. Hertel,Thomas W. (ed.), 1999. "Global Trade Analysis," Cambridge Books, Cambridge University Press, number 9780521643740, October.
    10. Roll, Richard, 1984. "Orange Juice and Weather," American Economic Review, American Economic Association, vol. 74(5), pages 861-880, December.
    11. Hertel, Thomas W. & Preckel, Paul V. & Cranfield, John A.L. & Ivanic, Maros, 2001. "Poverty Impacts Of Multilateral Trade Liberalization," Working papers 28697, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    12. Timmer, C. Peter, 2000. "The macro dimensions of food security: economic growth, equitable distribution, and food price stability," Food Policy, Elsevier, vol. 25(3), pages 283-295, June.
    13. Mordecai Ezekiel, 1938. "The Cobweb Theorem," The Quarterly Journal of Economics, Oxford University Press, vol. 52(2), pages 255-280.
    14. Jean-Paul Chavas & Matthew T. Holt, 1991. "On Nonlinear Dynamics: The Case of the Pork Cycle," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(3), pages 819-828.
    15. Boussard, Jean-Marc, 1996. "When risk generates chaos," Journal of Economic Behavior & Organization, Elsevier, vol. 29(3), pages 433-446, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sylvain Chabe-Ferret & Julien Gourdon & Mohamed Ali Marouani & Tancrède Voituriez, 2007. "Trade-Induced Changes in Economic Inequality: Assessment Issues and Policy Implications for Developing Countries," Working Papers DT/2007/11, DIAL (Développement, Institutions et Mondialisation).
    2. repec:dau:papers:123456789/4331 is not listed on IDEAS
    3. Marie Gabrielle Piketty & Lucie Weissleder & Hildo Meirelles De Souza Filho & Mário Otávio Batalha & Marcel Adenäuer & Arno Becker, 2009. "Assessing agricultural trade policies options with the European Union: a Brazilian perspective," Agricultural Economics, International Association of Agricultural Economists, vol. 40(4), pages 447-457, July.
    4. Maitre d'Hotel, E. & Bosc, P.M., 2009. "Public Policies Still Alive Within a Liberalized Environment: Insights From Costa Rica," Working Papers MoISA 200901, UMR MoISA : Montpellier Interdisciplinary center on Sustainable Agri-food systems (social and nutritional sciences): CIHEAM-IAMM, CIRAD, INRAE, L'Institut Agro, Montpellier SupAgro, IRD - Montpellier, France.
    5. Féménia, Fabienne & Gohin, Alexandre, 2011. "Dynamic modelling of agricultural policies: The role of expectation schemes," Economic Modelling, Elsevier, vol. 28(4), pages 1950-1958, July.
    6. Boussard, Jean-Marc, 2006. "Consequences of price volatility in evaluating the benefits of liberalisation," MPRA Paper 4467, University Library of Munich, Germany.
    7. Boussard, Jean-Marc & Gérard, Françoise & Piketty, Marie Gabrielle, 2005. "Evaluating the Benefits from Liberalization: are Standard Walrassian Models Relevant?," 89th Seminar, February 2-5, 2005, Parma, Italy 232587, European Association of Agricultural Economists.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Boussard, J.M. & Gérard, F. & Piketty, M.G. & Christensen, A.K. & Voituriez, T., 2002. "Agricultural trade liberalization in a world of uncertainty: Discussion of the results of a world CGE model," Conference papers 331027, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Kuik, Onno, 2003. "Climate change policies, energy security and carbon dependency: trade-offs for the European Union in the longer term," Conference papers 331080, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. Fabienne Féménia & Alexandre Gohin, 2010. "Faut-il une intervention publique pour stabiliser les marchés agricoles ? Revue des questions non résolues," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 91(4), pages 435-456.
    4. Christophe Gouel, 2012. "Agricultural Price Instability: A Survey Of Competing Explanations And Remedies," Journal of Economic Surveys, Wiley Blackwell, vol. 26(1), pages 129-156, February.
    5. Costantini, Valeria & Monni, Salvatore, 2008. "Environment, human development and economic growth," Ecological Economics, Elsevier, vol. 64(4), pages 867-880, February.
    6. Boussard, Jean-Marc & Gérard, Françoise & Piketty, Marie Gabrielle, 2005. "Evaluating the Benefits from Liberalization: are Standard Walrassian Models Relevant?," 89th Seminar, February 2-5, 2005, Parma, Italy 232587, European Association of Agricultural Economists.
    7. Femenia, Fabienne, 2010. "Impacts of Stockholding Behaviour on Agricultural Market Volatility: A Dynamic Computable General Equilibrium Approach," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 59(3).
    8. Sophie Mitra & Jean‐Marc Boussard, 2012. "A simple model of endogenous agricultural commodity price fluctuations with storage," Agricultural Economics, International Association of Agricultural Economists, vol. 43(1), pages 1-15, January.
    9. Skold, Karl Durwood, 1989. "The integration of alternative information systems: an application to the Hogs and Pigs report," ISU General Staff Papers 1989010108000010239, Iowa State University, Department of Economics.
    10. Dimos Chatzinikolaou & Michail Demertzis & Charis Vlados, 2021. "European Entrepreneurship Reinforcement Policies in Macro, Meso, and Micro Terms for the Post-COVID-19 Era," Review of European Studies, Canadian Center of Science and Education, vol. 13(2), pages 1-39, June.
    11. Sophie Mitra & Jean-Marc Boussard, 2008. "Storage and the Volatility of Agricultural Prices: A Model of Endogenous Fluctuations," Fordham Economics Discussion Paper Series dp2008-11, Fordham University, Department of Economics.
    12. Sanfo, Safiétou & Gérard, Françoise, 2012. "Public policies for rural poverty alleviation: The case of agricultural households in the Plateau Central area of Burkina Faso," Agricultural Systems, Elsevier, vol. 110(C), pages 1-9.
    13. Jean-Marc Boussard, 2001. "Assurances et marchés à terme: similitudes et différences," Économie rurale, Programme National Persée, vol. 266(1), pages 119-129.
    14. Mirzabaev, Alisher & Tsegai, Daniel W., 2012. "Effects of weather shocks on agricultural commodity prices in Central Asia," Discussion Papers 140769, University of Bonn, Center for Development Research (ZEF).
    15. Femenia, Fabienne, 2011. "To Subsidize or Not to Subsidize Private Storage? Evaluation of the Effects of Private Storage Subsidies as an Instrument to Stabilize Agricultural Markets After CAP Reforms," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114360, European Association of Agricultural Economists.
    16. Galtier, F., 2009. "Comment gérer l'instabilité des prix alimentaires dans les pays en développement ?," Working Papers MoISA 200904, UMR MoISA : Montpellier Interdisciplinary center on Sustainable Agri-food systems (social and nutritional sciences): CIHEAM-IAMM, CIRAD, INRAE, L'Institut Agro, Montpellier SupAgro, IRD - Montpellier, France.
    17. Hiremath, Gourishankar S. & Kattuman, Paul, 2017. "Foreign portfolio flows and emerging stock market: Is the midnight bell ringing in India?," Research in International Business and Finance, Elsevier, vol. 42(C), pages 544-558.
    18. Thomas W. Hertel & Jeffrey J. Reimer, 2006. "Predicting the Poverty Impacts of Trade Reform," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 2, May.
    19. Chiarella, Carl & He, Xue-Zhong & Hung, Hing & Zhu, Peiyuan, 2006. "An analysis of the cobweb model with boundedly rational heterogeneous producers," Journal of Economic Behavior & Organization, Elsevier, vol. 61(4), pages 750-768, December.
    20. Dieci, Roberto & Westerhoff, Frank, 2010. "Interacting cobweb markets," Journal of Economic Behavior & Organization, Elsevier, vol. 75(3), pages 461-481, September.

    More about this item

    Keywords

    International Relations/Trade;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:iaae03:25849. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.