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Impact of EU agricultural policy on developing countries: A Uganda case study

Author

Listed:
  • Ole Boysen

    () (Agricultural and Food Policy, University of Hohenheim
    Institute for International Integration Studies, Trinity College Dublin)

  • Hans Grinsted Jensen

    () (Department of Food and Resource Economics, University of Copenhagen)

  • Alan Matthews

    () (Department of Economics, Trinity College Dublin
    Institute for International Integration Studies, Trinity College Dublin)

Abstract

Despite substantial reforms, the EU's Common Agricultural Policy (CAP) is still criticised for its detrimental effects on developing countries. This paper provides updated evidence on the impact of the CAP on one developing country, Uganda. It goes beyond estimating macro-level economic effects by analysing the impacts on poverty. The policy simulation results show that eliminating EU agricultural support would have marginal but nonetheless positive impacts on the Ugandan economy and its poverty indicators. From the perspective of the EU's commitment to policy coherence for development, this supports the view that further reducing EU agricultural support would be positive for development.

Suggested Citation

  • Ole Boysen & Hans Grinsted Jensen & Alan Matthews, 2014. "Impact of EU agricultural policy on developing countries: A Uganda case study," The Institute for International Integration Studies Discussion Paper Series iiisdp452, IIIS.
  • Handle: RePEc:iis:dispap:iiisdp452
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    References listed on IDEAS

    as
    1. Ole Boysen, 2009. "Border Price Shocks, Spatial Price Variation, and their Impacts on Poverty in Uganda," The Institute for International Integration Studies Discussion Paper Series iiisdp306, IIIS.
    2. François Bourguignon & Maurizio Bussolo & Luiz A. Pereira da Silva, 2008. "The Impact of Macroeconomic Policies on Poverty and Income Distribution : Macro-Micro Evaluation Techniques and Tools," World Bank Publications, The World Bank, number 6586, August.
    3. David G. Blanchflower & Andrew J. Oswald, 1995. "The Wage Curve," MIT Press Books, The MIT Press, edition 1, volume 1, number 026202375x, March.
    4. Roman Keeney & Thomas W. Hertel, 2009. "The Indirect Land Use Impacts of United States Biofuel Policies: The Importance of Acreage, Yield, and Bilateral Trade Responses," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(4), pages 895-909.
    5. Hertel, Thomas & Hummels, David & Ivanic, Maros & Keeney, Roman, 2007. "How confident can we be of CGE-based assessments of Free Trade Agreements?," Economic Modelling, Elsevier, vol. 24(4), pages 611-635, July.
    6. Ole Boysen, 2016. "Food Demand Characteristics in Uganda: Estimation and Policy Relevance," South African Journal of Economics, Economic Society of South Africa, vol. 84(2), pages 260-293, June.
    7. Will Martin & Kym Anderson, 2006. "Agricultural Trade Reform and the Doha Development Agenda," World Bank Publications, The World Bank, number 6889, October.
    8. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    9. Arvind Panagariya, 2005. "Agricultural Liberalisation and the Least Developed Countries: Six Fallacies," The World Economy, Wiley Blackwell, vol. 28(9), pages 1277-1299, September.
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    11. David G. Blanchflower & Andrew Oswald, 1995. "International Wage Curves," NBER Chapters,in: Differences and Changes in Wage Structures, pages 145-174 National Bureau of Economic Research, Inc.
    12. David G. Blanchflower & Andrew J. Oswald, 1995. "An Introduction to the Wage Curve," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 153-167, Summer.
    13. Kym Anderson & Will Martin & Dominique van der Mensbrugghe, 2006. "Distortions to World Trade: Impacts on Agricultural Markets and Farm Incomes," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 28(2), pages 168-194.
    14. Brooks, Jonathan, 2014. "Policy coherence and food security: The effects of OECD countries’ agricultural policies," Food Policy, Elsevier, vol. 44(C), pages 88-94.
    15. Catherine Costa & Michelle Osborne & Xiao-guang Zhang & Pierre Boulanger & Patrick Jomini, 2009. "Modelling the Effects of the EU Common Agricultural Policy," Staff Working Papers 0903, Productivity Commission, Government of Australia.
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    Citations

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    Cited by:

    1. Matthews, Alan & Salvatici, Luca & Scoppola, Margherita, 2017. "Trade Impacts of Agricultural Support in the EU," Commissioned Papers 252767, International Agricultural Trade Research Consortium.
    2. Lungu, Ioana, 2017. "Neocolonialism or Balanced Partnership? Reframing Agricultural Relations Between the EU and Africa," MPRA Paper 83112, University Library of Munich, Germany.
    3. Wagener, Andreas & Zenker, Juliane, 2018. "Decoupled but not neutral: The effects of stochastic transfers on investment and incomes in rural Thailand," TVSEP Working Papers wp-008, Leibniz Universitaet Hannover, Institute of Development and Agricultural Economics, Project TVSEP.
    4. Linderhof, Vincent & Powell, Jeffrey & Vignes, Romain & Ruben, Ruerd, 2016. "The influence of household farming systems on dietary diversity and caloric intake: the case of Uganda," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246444, African Association of Agricultural Economists (AAAE).
    5. Gohin, Alexandre & Zheng, Yu, 2015. "Assessing the Market Impacts of the Common Agricultural Policy: Does Farmers’ Risk Attitude Matter?," 2015: Trade and Societal Well-Being, December 13-15, 2015, Clearwater Beach, Florida 229235, International Agricultural Trade Research Consortium.
    6. Alexandre Gohin & Yu Zheng, 2016. "Assessing the Market Impacts of the Common Agricultural Policy: Does Farmers' Risk Attitude Matter?," FOODSECURE Working papers 46, LEI Wageningen UR.
    7. Alan Matthews, 2015. "Impact of EU's agricultural and fisheries policies on the migration of third country nationals to the EU," Trinity Economics Papers tep0715, Trinity College Dublin, Department of Economics.
    8. repec:spr:ssefpa:v:10:y:2018:i:1:d:10.1007_s12571-017-0752-5 is not listed on IDEAS

    More about this item

    Keywords

    Uganda; Common Agricultural Policy; poverty; trade policy; domestic support; computable general equilibrium-microsimulation;

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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