Abstract
We estimate the impact of global merchandise trade distortions and services regulations on agricultural value added in various countries. Using the latest versions of the GTAP database and the GTAP-AGR model of the global economy, our results suggest real net farm incomes would rise in developing countries with a move to free trade, thereby alleviating rural poverty—despite a terms of trade deterioration for some developing countries that are net food importers or are enjoying preferential access to agricultural markets of high-income countries. We also show, for several large developing countries, the contribution of their own versus other countries’ trade policies.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
Anderson, K. (2002). Agricultural Trade Liberalization: Implications for Indian Ocean Rim Countries. Adelaide: Centre for International Economic Studies.
Anderson, K., and Y. Hayami (1986). The Political Economy of Agricultural Protection: East Asia in International Perspective. Sydney: Allen and Unwin.
Anderson, K., and W. Martin (2005). Agricultural Trade Reform and the Doha Development Agenda. World Economy 28 (9): 1301–1327.
Anderson, K., and W. Martin (eds.) (2006). Agricultural Trade Reform and the Doha Development Agenda. London: Palgrave Macmillan.
Anderson, K., and E. Valenzuela (2006a). Do Global Trade Distortions Still Harm Developing Country Farmers? Policy Research Working Paper 3901. World Bank, Washington D.C.
Anderson, K., and E. Valenzuela (2006b). The World Trade Organization’s Doha Cotton Initiative: A Tale of Two Issues. Policy Research Working Paper 3918. World Bank, Washington D.C.
Anderson, K., W. Martin, and E. Valenzuela (2006). The Relative Importance of Global Agricultural Subsidies and Market Access. Policy Research Working Paper 3900. World Bank, Washington, D.C.
Balassa, B., and Associates (1971). The Structure of Protection in Developing Countries. Baltimore: Johns Hopkins University Press.
Bautista, R. M., S. Robinson, P. Wobst, and F. Tarp (2001). Policy Bias and Agriculture: Partial and General Equilibrium Measures. Review of Development Economics 5 (1): 89–104.
Bouët, A., Y. Decreux, L. Fontagné, S. Jean, and D. Laborde (2004). A Consistent, ad valorem Equivalent Measure of Applied Protection Across the World: The MAcMap-HS6 Database. Mimeo. CEPII, Paris.
Dee, P. (2004). Economy-Wide Effects of Barriers to Trade in Services in Selected Developing Countries. TD/TC/WP(2004)42/REV1, Trade Directorate, OECD Secretariat.
Dihel, N. (2004). Impact of Services Barriers on Effective Rates of Protection in Agriculture and Manufacturing. TD/TC/WP(2004)49, Trade Directorate, OECD Secretariat, Paris.
Dimaranan, B. V. (ed.) (2006). Global Trade, Assistance, and Protection: The GTAP 6 Data Base. Center for Global Trade Analysis, West Lafayette: Purdue University.
Francois, J. F., H. van Meijl, and F. van Tongeren (2005). Gauging the WTO Negotiation’s Potential Gain from the Doha Round. Economic Policy 20 (42): 349–391.
Hertel, T. (ed.) (1997). Global Trade Analysis: Modeling and Applications. Cambridge: Cambridge University Press.
Hertel, T. W., and R. Keeney (2006). What’s at Stake: The Relative Importance of Import Barriers, Export Subsidies and Domestic Support. In K. Anderson and W. Martin (ed.) Agricultural Trade Reform and the Doha Development Agenda. London: Palgrave Macmillan.
Hertel, T. W., and L. A. Winters (eds.) (2006). Putting Development Back into the Doha Agenda: Poverty Impacts of a WTO Agreement. London: Palgrave Macmillan.
Hertel, T., D. Hummels, M. Ivanic, and R. Keeney (2003). How Confident Can We Be in CGE-Based Assessments of Free Trade Agreements? GTAP Working Paper No. 26. Center for Global Trade Analysis, Purdue University, West Lafayette.
Hinkle, L., and J. Montiel (eds.) (1999). Exchange Rate Misalignment: Concepts and Measurement for Developing Countries. New York: Oxford University Press.
Ingco, M. D. (1996). Tariffication in the Uruguay Round: How Much Liberalization? World Economy 19 (4): 425–447.
Jensen, H. T., S. Robinson, and F. Tarp (2002). General Equilibrium Measures of Agricultural Policy Bias in Fifteen Developing Countries. TMD Discussion Paper No. 105. International Food Policy Research Institute, Washington, D.C.
Keeney, R., and T. Hertel (2005). GTAP-AGR: A Framework for Assessing the Implications of Multilateral Changes in Agricultural Policies. GTAP Technical Paper No. 24. Center for Global Trade Analysis, Purdue University, West Lafayette.
Krueger, A. O., M. Schiff, and A. Valdes (1988). Agricultural Incentives in Developing Countries: Measuring the Effect of Sectoral and Economy-Wide Policies. World Bank Economic Review 2 (3): 255–272.
Legg, W. (2003). Agricultural Subsidies: Measurement and Use in Policy Evaluation. Journal of Agricultural Economics 54 (2): 175–200.
Lindert, P. (1991). Historical Patterns of Agricultural Protection. In P. Timmer (ed.), Agriculture and the State. Ithaca: Cornell University Press.
Little, I. M. D., T. Scitovsky, and M. Scott (1970). Industry and Trade in Some Developing Countries: A Comparative Study. London: Oxford University Press.
Martin, W., and Z. Wang (2004). The Landscape of World Agricultural Protection. Mimeo. The World Bank, Washington, D.C.
Mullen, K., D. Orden, and A. Gulati (2005). Agricultural Policies in India: Producer Support Estimates 1985–2002. MTID Discussion Paper No. 82. International Food Policy Research Institute, Washington D.C.
OECD (Organization for Economic Cooperation and Development) (2001). Market Effects of Crop Support Measures. Paris: OECD.
OECD (Organization for Economic Cooperation and Development) (2005a). Agricultural Policies in OECD Countries: Monitoring and Evaluation 2005. Paris: OECD.
OECD (Organization for Economic Cooperation and Development) (2005b). OECD-FAO Agricultural Outlook 2005–2014. Paris: OECD.
Piermartini, R. (2004). The Role of Export Taxes in the Field of Primary Commodities. WTO Discussion Paper 4. World Trade Organization, Geneva.
Seale, J., A. Regmi, and J. Bernstein (2003). International Evidence on Food Consumption Patterns. ERS Technical Bulletin No.1904, Washington D.C.: US Department of Agriculture.
Surry, Y. (1990). Econometric Modeling of the European Compound Feed Sector: An Application to France. Journal of Agricultural Economics 41 (3): 404–421.
Thiele, R. (2004). The Bias against Agriculture in Sub-Saharan Africa: Has It Survived 20 Years of Structural Adjustment Programs? Quarterly Journal of International Agriculture 42 (1): 5–20.
Tyers, R., and K. Anderson (1986). Distortions in World Food Markets: A Quantitative Assessment. Background Paper No. 22 prepared for the World Bank’s World Development Report 1986. World Bank, Washington, D.C.
Tyers, R., and K. Anderson (1992). Disarray in World Food Markets: A Quantitative Assessment. Cambridge: Cambridge University Press.
Valenzuela, E. (2006). Poverty, Vulnerability and Trade Policy in General Equilibrium. Ph.D. Dissertation. West Lafayette: Purdue University.
van der Mensbrugghe, D. (2006). Estimating the Benefits: Why Numbers Change. In R. Newfarmer (ed.), Trade, Doha and Development: A Window into the Issues. Washington, D.C.: World Bank.
Winters, L. A. (2005). European Agricultural Trade Policies and Poverty. European Review of Agricultural Economics 32 (3): 319–346.
World Bank (2002). Global Economic Prospects and the Developing Countries 2002: Making Trade Work for the Poor. Washington, D.C.: World Bank.
Author information
Authors and Affiliations
Corresponding author
Additional information
JEL no.
C68, D58, F17, Q17
About this article
Cite this article
Anderson, K., Valenzuela, E. Do Global Trade Distortions Still Harm Developing Country Farmers?. Rev. World Econ. 143, 108–139 (2007). https://doi.org/10.1007/s10290-007-0100-5
Issue Date:
DOI: https://doi.org/10.1007/s10290-007-0100-5