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Is agricultural liberalization beneficial to developing countries?

Author

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  • Bouët, Antoine
  • Bureau, Jean-Christophe
  • Decreux, Yvan
  • Jean, Sébastien

Abstract

Using an adapted version of the MIRAGE model, this paper aims at assessing the impact of a widespread liberalization in agriculture, as proposed in the revised Harbinson proposal. The CGE model includes imperfect competition and increasing returns to scale in industry and services. It assumes land and labor mobility to be imperfect across sectors, and developing countries have a dual labor market. Special emphasis is put on measuring properly protection and domestic support. Domestic support data is updated to 2001 for the EU and the US, and accounts for the Agenda 2000 reform and the New Farm Bill. Protection data, from the MAcMaps database, describes applied tariffs, taking preferential agreements exhaustively into account. The liberalization hypothesis used in each scenario are applied at the HS-6 level. The results provide a contrasted picture of the benefits developing countries may draw from agricultural liberalization.

Suggested Citation

  • Bouët, Antoine & Bureau, Jean-Christophe & Decreux, Yvan & Jean, Sébastien, 2003. "Is agricultural liberalization beneficial to developing countries?," Conference papers 331128, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331128
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