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Krueger/Schiff/Valdes revisited : agricultural price and trade policy reform in developing countries since 1960

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  • Anderson, Kym

Abstract

A study of distortions to agricultural incentives in 18 developing countries during 1960-84, by Krueger, Schiff and Valdes (1988; 1991), found that policies in most of those developing countries were directly or indirectly harming their farmers. Since the mid-1980s there has been a substantial amount of policy reform and opening up of many developing countries, and indicators of that progress have been made available recently by a new study that has compiled estimates for a much larger sample of developing countries and for as many years as possible since 1955. The new study also covers Europe’s transition economies and comparable estimates for high-income countries, thereby covering more than 90 percent of world agricultural output and employment. This paper summarizes the methodology used in the new study (pointing out similarities and differences with those used by the OECD and by Krueger, Schiff and Valdes), compares a synopsis of the indicators from Krueger, Schiff and Valdes and the new study for the period to 1984, summarizes the changing extent of price distortions across countries and commodities globally since then, and concludes by evaluating the degree of distortion reduction over the years since 1984 compared with how much still remains, according to the results of a global economy wide model.

Suggested Citation

  • Anderson, Kym, 2010. "Krueger/Schiff/Valdes revisited : agricultural price and trade policy reform in developing countries since 1960," Policy Research Working Paper Series 5165, The World Bank.
  • Handle: RePEc:wbk:wbrwps:5165
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    1. Sandri, Damiano & Valenzuela, Ernesto & Anderson, Kym, 2007. "Economic And Trade Indicators For Asia, 1960 To 2004," Agricultural Distortions Working Paper Series 48435, World Bank.
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    7. Anderson, Kym & Kurzweil, Marianne & Martin, Will & Sandri, Damiano & Valenzuela, Ernesto, 2008. "Measuring distortions to agricultural incentives, revisited," World Trade Review, Cambridge University Press, vol. 7(4), pages 675-704, October.
    8. Anderson, Kym & Lattimore, Ralph G. & Lloyd, Peter J. & MacLaren, Donald, 2007. "Distortions to Agricultural Incentives in Australia and New Zealand," 2007 Conference (51st), February 13-16, 2007, Queenstown, New Zealand 10407, Australian Agricultural and Resource Economics Society.
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    11. Kym Anderson, 2010. "Global Distortions to Agricultural Markets: New Indicators of Trade and Welfare Impacts, 1960 to 2007," Centre for International Economic Studies Working Papers 2010-03, University of Adelaide, Centre for International Economic Studies.
    12. James E. Anderson & J. Peter Neary, 2005. "Measuring the Restrictiveness of International Trade Policy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262012200.
    13. Kym Anderson & Alberto Valdés, 2008. "Distortions to Agricultural Incentives in Latin America," World Bank Publications, The World Bank, number 6604, November.
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    16. Kym Anderson & John Cockburn & Will Martin, 2010. "Agricultural Price Distortions, Inequality, and Poverty," World Bank Publications, The World Bank, number 2430, November.
    17. World Bank, 2007. "World Development Indicators 2007," World Bank Publications, The World Bank, number 8150, November.
    18. Hayami, Yujiro, 2007. "An Emerging Agricultural Problem in High-Performing Asian Economies," Agricultural Distortions Working Paper Series 48635, World Bank.
    19. Anderson, Kym & Croser, Johanna L. & Sandri, Damiano & Valenzuela, Ernesto, 2009. "Agricultural Distortion Patterns Since the 1950s: What Needs Explaining?," Agricultural Distortions Working Paper Series 50305, World Bank.
    20. Kym Anderson & Will Martin, 2009. "Distortions to Agricultural Incentives in Asia," World Bank Publications, The World Bank, number 2611.
    21. Jorge Quiroz & Luis Opazo, 2000. "The Krueger-Schiff-Valdés Study 10 Years Later: A Latin American Perspective," Economic Development and Cultural Change, University of Chicago Press, vol. 49(1), pages 181-196.
    22. Valenzuela, Ernesto & Wong, Sara & Sandri, Damiano, 2007. "Distortions to Agricultural Incentives in Ecuador," Agricultural Distortions Working Paper Series 48394, World Bank.
    23. Ivanic, Maros & Martin, Will, 2008. "Implications of higher global food prices for poverty in low-income countries," Policy Research Working Paper Series 4594, The World Bank.
    24. Kym Anderson, 2009. "Distortions to Agricultural Incentives : A Global Perspective, 1955-2007," World Bank Publications, The World Bank, number 9436, November.
    25. Valenzuela, Ernesto & van der Mensbrugghe, Dominique & Anderson, Kym, 2008. "General equilibrium effects of price distortions on global markets, farm incomes and welfare," Agricultural Distortions Working Paper Series 48630, World Bank.
    26. Valenzuela, Ernesto & Kym Anderson, 2009. "Alternative Agricultural Price Distortions for CGE Analysis of Developing Countries, 2004 and 1980-84," GTAP Research Memoranda 2925, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    27. Orden, David & Cheng, Fuzhi & Nguyen, Hoa & Grote, Ulrike & Thomas, Marcelle & Mullen, Kathleen & Sun, Dongsheng, 2007. "Agricultural producer support estimates for developing countries: Measurement issues and evidence from India, Indonesia, China, and Vietnam," Research reports 152, International Food Policy Research Institute (IFPRI).
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    Cited by:

    1. Anderson, Kym & Valenzuela, Ernesto, 2010. "Agricultural and trade policy reforms in Latin America: impacts on markets and welfare," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    2. Anderson, Kym & Martin, Will & van der Mensbrugghe, Dominique, 2013. "Estimating Effects of Price-Distorting Policies Using Alternative Distortions Databases," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 877-931, Elsevier.
    3. Kym Anderson & Ernesto Valenzuela, 2021. "What impact are subsidies and trade barriers abroad having on Australasian and Brazilian agriculture?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(2), pages 265-290, April.
    4. Watson, Derrill D., 2013. "Political Economy Synthesis: the Food Policy Crisis," WIDER Working Paper Series 050, World Institute for Development Economic Research (UNU-WIDER).
    5. Rocchi, Benedetto & Romano, Donato & Hamza, Raid, 2013. "Agriculture reform and food crisis in Syria: Impacts on poverty and inequality," Food Policy, Elsevier, vol. 43(C), pages 190-203.
    6. Derrill D. Watson, 2013. "Political Economy Synthesis: the Food Policy Crisis," WIDER Working Paper Series wp-2013-050, World Institute for Development Economic Research (UNU-WIDER).
    7. Hossein Azadi & Eric Vanhaute, 2019. "Mutual Effects of Land Distribution and Economic Development: Evidence from Asia, Africa, and Latin America," Land, MDPI, Open Access Journal, vol. 8(6), pages 1-15, June.

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    More about this item

    Keywords

    Emerging Markets; Economic Theory&Research; Markets and Market Access; Currencies and Exchange Rates; Climate Change Economics;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F59 - International Economics - - International Relations, National Security, and International Political Economy - - - Other
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • N50 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - General, International, or Comparative
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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