Has agricultural trade liberalization improved welfare in the least-developed countries? Yes
The author evaluates the progress in agricultural liberalization -and the welfare effects for least-developed and net food-importing countries- as a result of agricultural price shocks resulting from the Uruguay Round. She findsthat: (1) The changes in welfare are significantly affected by the structure of trade and distortions in the domestic economy. (2) Although many economies are hurt by increases in world prices, losses in terms of trade are small relative to total GDP. Only in a few countries does the estimated welfare change constitute more than 1 percent of GDP. (3) In several countries, the distortion effects are significantly larger than the terms-of-trade effects. In some cases, the distortion effects work in opposition to the terms-of-trade effects and are large enough to reverse the sign of the net welfare change. In short, removing policy distortions could convert the small loss in terms of trade to potential gains. But many least-developed, net food-importing countries did not use the Round to support domestic efforts at trade reform. As most studies show, most gains from multilateral liberalization come from the countries'own liberalization efforts, so countries that failed to liberalize their trade policy lost the opportunity for gains.
|Date of creation:||30 Apr 1997|
|Date of revision:|
|Contact details of provider:|| Postal: 1818 H Street, N.W., Washington, DC 20433|
Phone: (202) 477-1234
Web page: http://www.worldbank.org/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Salazar P. Brandao, Antonio & Martin, Will, 1993.
"Implications of agricultural trade liberalization for the developing countries,"
Policy Research Working Paper Series
1116, The World Bank.
- Brandão, Antônio Salazar P. & Martin, Will J., 1993. "Implications of agricultural trade liberalization for the developing countries," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 8(4), June.
- Brandao, Antonio Salazar P. & Martin, Will J., 1993. "Implications of agricultural trade liberalization for the developing countries," Agricultural Economics, Blackwell, vol. 8(4), pages 313-343, June.
- Anderson, James E & Neary, J Peter, 1992.
"A New Approach to Evaluating Trade Policy,"
CEPR Discussion Papers
683, C.E.P.R. Discussion Papers.
- J Anderson & J.P. Neary, 1993. "A New Approach to Evaluating Trade Policy," CEP Discussion Papers dp0173, Centre for Economic Performance, LSE.
- James E. Anderson & J. Peter Neary, 1991. "A new approach to evaluating trade policy," Working Papers 199105, School of Economics, University College Dublin.
- Anderson, James E. & Neary, J. Peter, 1992. "A new approach to evaluating trade policy," Policy Research Working Paper Series 1022, The World Bank.
- James E. Anderson & J. Peter Neary, 1993.
"Measuring the restrictiveness of trade policy,"
199307, School of Economics, University College Dublin.
- Tyers, Rod & Falvey, Rod, 1989. "Border Price Changes and Domestic Welfare in the Presence of Subsidised Exports," Oxford Economic Papers, Oxford University Press, vol. 41(2), pages 434-51, April.
When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:1748. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi)
If references are entirely missing, you can add them using this form.