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General Equilibrium and the Ban on British Beef Exports

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  • L. J. Hubbard
  • G. Philippidis

Abstract

We present an ex post CGE evaluation of the ban on exports of British beef, imposed in 1996 and lifted in 1999. A specific aim is to assess the degree to which cattle, slaughtering and meat processing sectors in the UK recover their pre‐ban positions. More generally, the modelling exercise can be viewed as identifying the extent to which an economy recovers from a policy shock, or similar, when that shock is removed or reversed. Results suggest that, following removal of the ban, exports, output, factor use and trade balances in the directly affected sectors, in the short run, are below their 1996 pre‐ban levels. Whilst some recovery is evident in the long run, not all sectors regain their pre‐ban positions. The results offer further insights into the general equilibrium effects of what was a highly unusual policy shock to the UK economy, that of a three year ban on exports of beef.

Suggested Citation

  • L. J. Hubbard & G. Philippidis, 2001. "General Equilibrium and the Ban on British Beef Exports," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(3), pages 87-95, September.
    • Handle: RePEc:bla:jageco:v:52:y:2001:i:3:p:87-95
    DOI: 10.1111/j.1477-9552.2001.tb00940.x
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    References listed on IDEAS

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    Cited by:

    1. Pierre Boulanger & Hasan Dudu & Emanuele Ferrari & George Philippidis, 2016. "Russian Roulette at the Trade Table: A Specific Factors CGE Analysis of an Agri-food Import Ban," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(2), pages 272-291, June.
    2. Mohammad Reza Farzanegan & Mohammad Mohammadikhabbazan & Hossein Sadeghi, 2015. "Effect of Oil Sanctions on the Macroeconomic and Household Welfare in Iran: New Evidence from a CGE Model," MAGKS Papers on Economics 201507, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    3. Dimitrios Panagiotou & Azzeddine M. Azzam, 2010. "Trade Bans, Imperfect Competition, and Welfare: BSE and the U.S. Beef Industry," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 58(1), pages 109-129, March.
    4. Boulanger, Pierre H & Dudu, Hasan & Ferrari, Emanuele & Philippidis, George, 2015. "The cost of import prohibition for political reason: CGE analysis of the Russian ban on agri-food products," Conference papers 332613, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. Nin Pratt, A. & Bonnet, P. & Jabbar, Mohammad A. & Ehui, Simeon K. & de Haan, C., 2005. "Benefits and cost of compliance of compliance of sanitary regulations in livestock markets: the case of Rift valley Fever in the Somali Region of Ethiopia," Research Reports 182867, International Livestock Research Institute.

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