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Assessing Protectionism and Subsidies in Agriculture: A Gravity Approach

  • Claudio Paiva

This paper provides the first comprehensive empirical analysis of agricultural trade using a gravity model. The data set covers bilateral trade in agricultural goods for 152 countries over the periods 1990-93 and 1999-2002. The estimations support claims that protectionism and distortive subsidies to agriculture remain widespread in more developed nations, which are shown to import less and export more agricultural products than expected given other economic, political, and geographic determinants of trade. However, some developing regions that are often thought to be the main victims of industrial-country protectionism are also found to be relatively closed to agricultural trade.

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Paper provided by International Monetary Fund in its series IMF Working Papers with number 05/21.

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Length: 17
Date of creation: 01 Jan 2005
Date of revision:
Handle: RePEc:imf:imfwpa:05/21
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  1. Frankel, Jeffrey & Rose, Andrew K., 2001. "An Estimate of the Effect of Common Currencies on Trade and Income," Working Paper Series rwp01-013, Harvard University, John F. Kennedy School of Government.
  2. repec:rus:hseeco:123040 is not listed on IDEAS
  3. Stephen Tokarick, 2003. "Measuring the Impact of Distortions in Agricultural Trade in Partial and General Equilibrium," IMF Working Papers 03/110, International Monetary Fund.
  4. Andrew K. Rose, 2004. "Do We Really Know That the WTO Increases Trade?," American Economic Review, American Economic Association, vol. 94(1), pages 98-114, March.
  5. Dimaranan, Betina & Hertel, Thomas W. & Keeney, Roman, 2003. "OECD Domestic Support and the Developing Countries," GTAP Working Papers 1161, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  6. Aaditya Mattoo & Arvind Subramanian, 2004. "The WTO and the Poorest Countries; The Stark Reality," IMF Working Papers 04/81, International Monetary Fund.
  7. Subramanian, Arvind & Wei, Shang-Jin, 2005. "The WTO Promotes Trade, Strongly But Unevenly," CEPR Discussion Papers 5122, C.E.P.R. Discussion Papers.
  8. Daria Taglioni, 2002. "Exchange Rate Volatility as a Barrier to Trade: New Methodologies and Recent Evidence," Economie Internationale, CEPII research center, issue 89-90, pages 227-259.
  9. James E. Anderson & Eric van Wincoop, 2000. "Gravity with Gravitas: A Solution to the Border Puzzle," Boston College Working Papers in Economics 485, Boston College Department of Economics.
  10. Francois, Joseph & van Meijl, Hans & van Tongeren, Frank, 2003. "Trade Liberalization and Developing Countries Under the Doha Round," CEPR Discussion Papers 4032, C.E.P.R. Discussion Papers.
  11. Haveman, Jon D. & Shatz, Howard J., 2003. "Developed Country Trade Barriers and the Least Developed Countries: The Economic Results of Freeing Trade," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  12. William R. Cline, 2004. "Trade Policy and Global Poverty," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 379, May.
  13. Chen, Natalie, 2002. "Intra-national versus International Trade in the European Union: Why do National Borders Matter?," CEPR Discussion Papers 3407, C.E.P.R. Discussion Papers.
  14. Enzo Croce & V. Hugo Juan-Ramon & Feng Zhu, 2004. "Performance of Western Hemisphere Trading Blocs; A Cost-Corrected Gravity Approach," IMF Working Papers 04/109, International Monetary Fund.
  15. Jeffrey A. Frankel, 1997. "Regional Trading Blocs in the World Economic System," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 72, May.
  16. repec:dgr:uvatin:2003060 is not listed on IDEAS
  17. Dimaranan, Betina & Hertel, Thomas & Keeney, Roman, 2003. "OECD Domestic Support and Developing Countries," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  18. repec:dgr:uvatin:20030060 is not listed on IDEAS
  19. Anderson, Kym, 2003. "Trade Liberalization, Agriculture, and Poverty in Low-income Countries," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  20. Shang-Jin Wei, 1996. "Intra-National versus International Trade: How Stubborn are Nations in Global Integration?," NBER Working Papers 5531, National Bureau of Economic Research, Inc.
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