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Measuring the Impact of Distortions in Agricultural Trade in Partial and General Equilibrium

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  • Stephen Tokarick

Abstract

This paper provides quantitative estimates of the impact of removing agricultural support (both tariffs and subsidies) in partial- and general-equilibrium frameworks. The results show that agricultural support in industrial countries is highly distortionary and tariffs have a larger distortionary impact than subsidies. Removal of agricultural support would likely raise the international prices of food, resulting in an increase in the cost of food for many net-food- importing countries, although the increase is generally small. The results also show that most of the benefits from removing agricultural support accrue to the countries that liberalize.

Suggested Citation

  • Stephen Tokarick, 2003. "Measuring the Impact of Distortions in Agricultural Trade in Partial and General Equilibrium," IMF Working Papers 03/110, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:03/110
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    References listed on IDEAS

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    1. Anderson, James E., 1998. "The Uruguay Round and welfare in some distorted agricultural economies," Journal of Development Economics, Elsevier, vol. 56(2), pages 393-410, August.
    2. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685.
    3. Glenn W. Harrison & Thomas F. Rutherford & David G. Tarr, 2017. "Quantifying The Uruguay Round," World Scientific Book Chapters,in: Trade Policies for Development and Transition, chapter 16, pages 363-388 World Scientific Publishing Co. Pte. Ltd..
    4. Hoekman, Bernanrd & Ng, Francis & Olarreaga, Marcelo, 2003. "Reducing agrcultural tariffs versus domestic support : what's more important for developing countries?," Policy Research Working Paper Series 2918, The World Bank.
    5. repec:oup:jafrec:v:10:y:2001:i:3:p:227-257. is not listed on IDEAS
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    Cited by:

    1. Shepherd, Ben, 2006. "Estimating Price Elasticities of Supply for Cotton: A Structural Time-Series Approach," MPRA Paper 1252, University Library of Munich, Germany.
    2. Nodjitigje DJIMASRA, 2010. "Les déterminants de la performance à l'exportation du coton : l'illustration des pays africains," LEO Working Papers / DR LEO 1093, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
    3. MacDonald, Stephen & Meyer, Leslie A. & Somwaru, Agapi, 2003. "Perspectives On Cotton Global Trade Reforms," 2003 Annual meeting, July 27-30, Montreal, Canada 21902, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Herrmann, Michael, 2006. "Agricultural Support Measures of Advanced Countries and Food Insecurity in Developing Countries," WIDER Working Paper Series 141, World Institute for Development Economic Research (UNU-WIDER).
    5. Mattoo, Aaditya & Subramanian, Arvind, 2004. "The WTO and the poorest countries: the stark reality," World Trade Review, Cambridge University Press, vol. 3(03), pages 385-407, November.
    6. Stephen Tokarick, 2004. "What Do We Know About Tariff Incidence?," IMF Working Papers 04/182, International Monetary Fund.
    7. Gillson, I & Poulton, Colin & Balcombe, Kelvin & Page, S, 2004. "Understanding the impact of Cotton Subsidies on developing countries," MPRA Paper 15373, University Library of Munich, Germany.
    8. Fadiga, Mohamadou L. & Mohanty, Samarendu & Pan, Suwen, 2005. "The Impacts of U.S. Cotton Programs on the West and Central African Countries Cotton Export Earnings," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 6(2), August.
    9. Bureau, Jean-Christophe & Jean, Sebastien & Matthews, Alan, 2005. "Agricultural Trade Liberalization: Assessing the Consequences for Developing Countries," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24628, European Association of Agricultural Economists.
    10. Cororaton, Caesar B. & Orden, David, 2008. "Pakistan's cotton and textile economy: Intersectoral linkages and effects on rural and urban poverty," Research reports 158, International Food Policy Research Institute (IFPRI).
    11. Niemi, Jyrki S. & Fahlbeck, Erik & Hofreither, Markus F., 2005. "Ten Years After - Welfare Effects of the Application of the CAP in Austria, Finland and Sweden," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24767, European Association of Agricultural Economists.
    12. Luis San Vicente Portes, 2005. "On the Distributional Effects of Trade Policy: A Macroeconomic Perspective," Computing in Economics and Finance 2005 358, Society for Computational Economics.
    13. Baffes, John, 2004. "Cotton : Market setting, trade policies, and issues," Policy Research Working Paper Series 3218, The World Bank.
    14. Valdes, Alberto & Foster, William E., 2006. "Latin America's "New Open Regionalism" and WTO Negotiations: the case of agriculture," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 6(12).
    15. Brockmeier, Martina & Bektasoglu, Beyhan, 2014. "Model structure or data aggregation level: Which leads to greater bias of results?," Economic Modelling, Elsevier, vol. 38(C), pages 238-245.
    16. Ilhem Baghdadli & Hela Cheikhrouhou & Gael Raballand, 2007. "Strategies for Cotton in West and Central Africa : Enhancing Competitiveness in the "Cotton 4"," World Bank Publications, The World Bank, number 6784, July.
    17. Claudio Paiva, 2008. "Assessing protectionism and subsidies in agriculture-a gravity approach," Journal of International Development, John Wiley & Sons, Ltd., vol. 20(5), pages 628-640.
    18. Gadanakis, Yiorgos & Baourakis, George & Clapan, Carmen, 2007. "Measuring the impacts of distortions in the European Union cotton sector: a partial equilibrium analysis using the ATPSM model framework," Working Papers 7285, TRADEAG - Agricultural Trade Agreements.
    19. Mohamed Fenira, 2015. "Trade Openness and Growth in Developing Countries: An Analysis of the Relationship after Comparing Trade Indicators," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 5(3), pages 468-482, March.

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    Keywords

    Agricultural trade; Tariffs; Subsidies; Models; input subsidies; production subsidies; price support; world price; Agriculture in International Trade;

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