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Tariff protection elimination and Common Agricultural Policy reform: implications of changes in methods of import demand modelling

Author

Listed:
  • Alexandre Gohin

    (Économie et Sociologie Rurales - INRA - Institut National de la Recherche Agronomique)

  • Herve Guyomard

    (Économie et Sociologie Rurales - INRA - Institut National de la Recherche Agronomique)

  • Chantal Le Mouël

    (Économie et Sociologie Rurales - INRA - Institut National de la Recherche Agronomique)

Abstract

The study proposes a way for accommodating the traditional Armington assumption to capture the possibility for a country to import imperfect substitutes as well as perfect substitutes for domestically produced goods. When this possibility is incorporated into a modelling framework, then a Common Agricultural Policy elimination scenario, including the setting to zero of import tariffs, would have starker implications than many studies suggest. To illustrate this point, a Computable General Equilibrium (CGE) model of the French economy is used, highlighting agricultural and food sectors. The study analyses the consequences for the French economy of a complete liberalization scenario in the European sector of cereals.

Suggested Citation

  • Alexandre Gohin & Herve Guyomard & Chantal Le Mouël, 2006. "Tariff protection elimination and Common Agricultural Policy reform: implications of changes in methods of import demand modelling," Post-Print hal-01931629, HAL.
    • Handle: RePEc:hal:journl:hal-01931629
    DOI: 10.1080/00036840500414609
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    References listed on IDEAS

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    1. Harrison, Glenn W. & Rutherford, Thomas F. & Wooton, Ian, 1995. "Liberalizing agriculture in the European union," Journal of Policy Modeling, Elsevier, vol. 17(3), pages 223-255, June.
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    8. Hertel, Thomas W., 2002. "Applied general equilibrium analysis of agricultural and resource policies," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 26, pages 1373-1419, Elsevier.
    9. Lofgren, Hans & Robinson, Sherman, 1997. "The mixed-complementary approach to specifying agricultural supply in computable general equilibrium models:," TMD discussion papers 20, International Food Policy Research Institute (IFPRI).
    10. Hertel, Thomas W., 2002. "Applied general equilibrium analysis of agricultural and resource policies," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 26, pages 1373-1419, Elsevier.
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    Cited by:

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    2. Cranfield, John & Preckel, Paul & Hertel, Thomas, 2006. "Poverty Analysis Using an International Cross-Country Demand System," GTAP Working Papers 2211, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    3. Banse, Martin & Grethe, Harald, 2006. "Using the Logistic Functional Form for Modelling International Price Transmission in Net Trade Simulation Models," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25344, International Association of Agricultural Economists.
    4. Fofana, Ismaël & Cockburn, John & Decaluwé, Bernard & Mabugu, Ramos & Chitiga, Margaret & Latigo, Alfred & Abdourahman, Omar, 2006. "A Gender-Aware Integrated Macro-Micro Model for Evaluating Impacts of Policies on Poverty Reduction in Africa: The Case of South Africa," Conference papers 331562, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. Alexandre Gohin, 2008. "Impacts of the European Biofuel Policy on the Farm Sector: A General Equilibrium Assessment," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(4), pages 623-641.
    6. Antonella Finizia & Riccardo Magnani & Federico Perali & Paolo Polinori, 2005. "The Meg-Ismea Model for Analysis of Italy’s Agricultural Policies," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 4, November.

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