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Understanding the impact of Cotton Subsidies on developing countries

  • Gillson, I
  • Poulton, Colin
  • Balcombe, Kelvin
  • Page, S

Models developed to investigate the impact of cotton subsidies have found that US support, by virtue of its absolute magnitude, is particularly damaging and responsible for most of the reduction in cotton-earning potential in developing countries. This has been used as an argument for reducing or postponing cuts in subsidies to European farmers, as these appear to have less impact on developing countries. Our results, through a careful examination of the nature of the cotton market, agree but suggest that under certain assumptions subsidies by smaller subsidisers (such as the EU) may be disproportionately harmful to some suppliers, notably to West and Central African countries. This is especially damaging to them since they have the potential to increase supply.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 15373.

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Date of creation: 2004
Date of revision:
Handle: RePEc:pra:mprapa:15373
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  1. Louis M. Goreux & Paul R. Masson & Dhaneshwar Ghura & Ousmane Badiane, 2002. "Cotton Sector Strategies in West and Central Africa," IMF Working Papers 02/173, International Monetary Fund.
  2. Maumbe, Blessing M. & Swinton, Scott M., 2003. "Hidden health costs of pesticide use in Zimbabwe's smallholder cotton growers," Social Science & Medicine, Elsevier, vol. 57(9), pages 1559-1571, November.
  3. Chakraborty, Kalyan & Hudson, Darren & Ethridge, Don E. & Misra, Sukant K. & Kar, Gyana, 1999. "An Overview of the Cotton and Textile Industries in India," Cotton Economics Research Institute CER Series 53178, Texas Tech University, Department of Agricultural and Applied Economics.
  4. Minot, Nicholas & Daniels, Lisa, 2002. "Impact of global cotton markets on rural poverty in Benin," MTID discussion papers 48, International Food Policy Research Institute (IFPRI).
  5. Govereh, Jones & Jayne, T.S., 2003. "Cash cropping and food crop productivity: synergies or trade-offs?," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 28(1), January.
  6. Poulton, Colin & Gibbon, Peter & Hanyani-Mlambo, Benjamine & Kydd, Jonathan & Maro, Wilbald & Larsen, Marianne Nylandsted & Osorio, Afonso & Tschirley, David & Zulu, Ballard, 2004. "Competition and Coordination in Liberalized African Cotton Market Systems," World Development, Elsevier, vol. 32(3), pages 519-536, March.
  7. Stephen Tokarick, 2003. "Measuring the Impact of Distortions in Agricultural Trade in Partial and General Equilibrium," IMF Working Papers 03/110, International Monetary Fund.
  8. Mohanty, Samarendu & Fang, Cheng & Chaudhary, Jagadanand, 2003. "Assessing the Competitiveness of Indian Cotton Production: A Policy Analysis Matrix Approach," Cotton Economics Research Institute CER Series 53142, Texas Tech University, Department of Agricultural and Applied Economics.
  9. Dijkstra, A. Geske & Kees van Donge, Jan, 2001. "What Does the 'Show Case' Show? Evidence of and Lessons from Adjustment in Uganda," World Development, Elsevier, vol. 29(5), pages 841-863, May.
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