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