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How would global trade liberalization affect rural and regional incomes in Australia?

  • Kym Anderson
  • James Giesecke
  • Ernesto Valenzuela

For decades rural Australia has been discriminated against by industrial policies at home and agricultural protectionism abroad. While agricultural export taxation in poor countries had the opposite impact, recent reforms there mean that that offsetting effect on Australia has diminished. There has also been some re-instrumentation of rich-country farm policies away from trade measures. This paper draws on new evidence to examine whether Australian farmers and rural regions are still adversely affected by farm price-distortive policies abroad, using a global and a national economy-wide model. The results vindicate the continuing push by Australia's rural communities for multilateral agricultural trade liberalization.

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Paper provided by Victoria University, Centre of Policy Studies/IMPACT Centre in its series Centre of Policy Studies/IMPACT Centre Working Papers with number g-176.

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Date of creation: Jul 2008
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Publication status: Published in Australian Journal of Agricultural and Resource Economics, 2010, Vol. 54(4), October, pp. 389-406.
Handle: RePEc:cop:wpaper:g-176
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  1. repec:cup:cbooks:9780521351058 is not listed on IDEAS
  2. Kym Anderson & Will Martin, 2009. "Distortions to Agricultural Incentives in Asia," World Bank Publications, The World Bank, number 2611.
  3. Kym Anderson & Peter Lloyd & Donald MacLaren, 2007. "Distortions to Agricultural Incentives in Australia Since World War II," Centre for International Economic Studies Working Papers 2007-01, University of Adelaide, Centre for International Economic Studies.
  4. Anderson, Kym & Lattimore, Ralph G. & Lloyd, Peter J. & MacLaren, Donald, 2008. "Distortions to Agricultural Incentives in Australia and New Zealand," Agricultural Distortions Working Paper 48387, World Bank.
  5. van der Mensbrugghe, Dominique & Valenzuela, Ernesto & Anderson, Kym, 2009. "Border Price and Export Demand Shocks for Developing Countries from Rest-of-World Trade Liberalization Using the Linkage Model," Agricultural Distortions Working Paper 52797, World Bank.
  6. Kym Anderson, 2009. "Distortions to Agricultural Incentives : A Global Perspective, 1955-2007," World Bank Publications, The World Bank, number 9436.
  7. Adams, Philip D. & Dixon, Peter B. & McDonald, Daina & Meagher, G. A. & Parmenter, Brian R., 1994. "Forecasts for the Australian economy using the MONASH model," International Journal of Forecasting, Elsevier, vol. 10(4), pages 557-571, December.
  8. Gardner, Bruce L., 2008. "Distortions to Agricultural Incentives in the United States and Canada," Agricultural Distortions Working Paper 48573, World Bank.
  9. Valenzuela, Ernesto & Wong, Sara & Sandri, Damiano, 2007. "Distortions to Agricultural Incentives in Ecuador," Agricultural Distortions Working Paper 48394, World Bank.
  10. Mark Horridge & Glyn Wittwer, 2008. "Creating and managing an impossibly large CGE database that is up-to-date," Centre of Policy Studies/IMPACT Centre Working Papers g-175, Victoria University, Centre of Policy Studies/IMPACT Centre.
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