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Cotton In A Free Trade World

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Listed:
  • SUWEN PAN
  • MOHAMADOU FADIGA
  • SAMARENDU MOHANTY
  • MARK WELCH

Abstract

Trade liberalizing reform in the world cotton market would increase world cotton traded an average 2.69% over 5 yr and increase world cotton prices to an average 10.5%. A partial equilibrium model was used to estimate the effects of removing global domestic subsidies and border tariffs for cotton. Trade flows in international markets would be affected as U.S. market share of world cotton exports decline, net cotton‐importing countries with minimum domestic and trade distortions import less because of higher cotton prices, and net cotton‐importing countries that subsidize domestic production and/or impose border tariffs significantly increase their imports. (JEL F17, F42, F47, O2)

Suggested Citation

  • Suwen Pan & Mohamadou Fadiga & Samarendu Mohanty & Mark Welch, 2007. "Cotton In A Free Trade World," Economic Inquiry, Western Economic Association International, vol. 45(1), pages 188-197, January.
    • Handle: RePEc:bla:ecinqu:v:45:y:2007:i:1:p:188-197
    DOI: 10.1111/j.1465-7295.2006.00014.x
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    1. Pan, Suwen & Welch, Mark & Mohanty, Samarendu & Fadiga, Mohamadou L. & Ethridge, Don E., 2005. "Assessing the Impacts of the Chinese TRQ System and U.S. Subsidies on the World Cotton Market: Technical Annex," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 6(2), pages 1-7.
    2. FAPRI Staff, 2005. "U.S. Proposal for WTO Agriculture Negotiations: Its Impact on U.S. and World Agriculture," Center for Agricultural and Rural Development (CARD) Publications 05-wp417, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    3. Fadiga, Mohamadou L. & Mohanty, Samarendu & Pan, Suwen, 2005. "The Impacts of U.S. Cotton Programs on the West and Central African Countries Cotton Export Earnings," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 6(2), pages 1-11.
    4. Clements, Kenneth W. & Lan, Yihui, 2001. "World Fibers Demand," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 33(1), pages 1-23, April.
    5. Bruce A. Babcock & John C. Beghin & Jacinto F. Fabiosa & Stephane De Cara & Amani Elobeid & Cheng Fang & Chad E. Hart & Murat Isik & Holger Matthey & Alexander E. Saak & Karen Kovarik & FAPRI Staff, 2002. "Doha Round of the World Trade Organization: Appraising Further Liberalization of Agricultural Markets, The," Food and Agricultural Policy Research Institute (FAPRI) Publications (archive only) 02-wp317, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    6. Pan, Suwen & Mohanty, Samarendu & Ethridge, Don E. & Fadiga, Mohamadou L., 2004. "The Impacts of U.S. Cotton Programs on the World Market: An Analysis of Brazilian and African WTO Petitions," Cotton Economics Research Institute CER Series 31254, Texas Tech University, Department of Agricultural and Applied Economics.
    7. Pan, Suwen & Welch, Mark & Mohanty, Samarendu & Fadiga, Mohamadou L. & Ethridge, Don E., 2005. "Assessing the Impacts of the Chinese TRQ System and U.S. Subsidies on the World Cotton Market," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 6(2), pages 1-16.
    8. Mr. Stephen Tokarick, 2003. "Measuring the Impact of Distortions in Agricultural Trade in Partial and General Equilibrium," IMF Working Papers 2003/110, International Monetary Fund.
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    Cited by:

    1. William Ridley & Stephen Devadoss, 2023. "Competition and trade policy in the world cotton market: Implications for US cotton exports," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(5), pages 1365-1387, October.
    2. George Verikios, 2008. "The costs of global tariff barriers on wool products: 1997–2005," Agricultural Economics, International Association of Agricultural Economists, vol. 39(1), pages 87-101, July.

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    More about this item

    JEL classification:

    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • F47 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Forecasting and Simulation: Models and Applications
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy

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