DP5337 Do Global Trade Distortions Still Harm Developing Country Farmers?
|Author(s):||Kym Anderson, Ernesto Valenzuela|
|Publication Date:||November 2005|
|Keyword(s):||agricultural value added, CGE modeling, economic welfare, trade policy reform|
|JEL(s):||C68, D58, F17, Q17|
|Programme Areas:||International Trade and Regional Economics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=5337|
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