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The Role of Export Restrictions in Agricultural Trade

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  • Estrades, Carmen
  • Flores, Manuel
  • Lezama, Guillermo

Abstract

Between 2006 and 2011, in a global context of rising food prices, many countries applied price-isolating policies. Export restrictions were among the measures most frequently applied. However, as countries are not obliged to notify WTO about the imposition of export restrictions, there is not good information about the measures applied. We fill this void by building a comprehensive database on export restrictions applied in the agricultural sector worldwide between 2005 and 2014. We name it the Export Restriction in Agriculture (ERA) database, and we use it to analyze the incidence of export restrictions by country, type of product, type of measure, and time span. Using the ERA database, we assess the effects of export restrictions on agricultural trade and global food prices in the period 2005-2013. To do so, we estimate a disaggregated gravity model of trade where the effects of export restrictions and import tariffs on traded values and volumes allowed us to infer the existence of an effect on prices. Clear evidence of export restrictions affecting world prices is limited to a handful of sectors, and weak evidence suggests that it may exist in some other sectors. We also find weak evidence of an impact of import promoting policies on agricultural prices. These results highlights the idea that export restrictions should be addressed at the multilateral level, but negotiations on export restrictions should not be disassociated from talks on other price-insulating policies.

Suggested Citation

  • Estrades, Carmen & Flores, Manuel & Lezama, Guillermo, 2017. "The Role of Export Restrictions in Agricultural Trade," Commissioned Papers 256421, International Agricultural Trade Research Consortium.
  • Handle: RePEc:ags:iatrcp:256421
    DOI: 10.22004/ag.econ.256421
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    Cited by:

    1. Beckman, Jayson & Dyck, John & Heerman, Kari, 2017. "The Global Landscape of Agricultural Trade, 1995-2014," Economic Information Bulletin 265270, United States Department of Agriculture, Economic Research Service.
    2. Wenshou Yan & Yan Cai & Faqin Lin & Dessie Tarko Ambaw, 2021. "The Impacts of Trade Restrictions on World Agricultural Price Volatility during the COVID‐19 Pandemic," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 29(6), pages 139-158, November.
    3. Solleder, Jean-Marc, 2020. "Market power and export taxes," European Economic Review, Elsevier, vol. 125(C).
    4. Jayson Beckman & Carmen Estrades & Angel Aguiar, 2019. "Export taxes, food prices and poverty: a global CGE evaluation," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 11(1), pages 233-247, February.

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    More about this item

    Keywords

    Agricultural and Food Policy; International Relations/Trade;

    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
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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