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Title: Do Global Trade Distortions Still Harm Developing Country Farmers?

Author(s): Kym Anderson and Ernesto Valenzuela

Publication Date: November 2005

Keyword(s): agricultural value added, CGE modeling, economic welfare and trade policy reform

Programme Area(s): International Trade and Regional Economics

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 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

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Bibliographic Reference

Anderson, K and Valenzuela, E. 2005. ' Do Global Trade Distortions Still Harm Developing Country Farmers?'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=5337