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Trade liberalization and state support of agriculture: effects for developing countries

Author

Listed:
  • Vasily Erokhin

    (Department of Management and Marketing, Moscow University of Finance and Law, Moscow, Russia)

  • Anna Ivolga

    (Department of Tourism and Service, Stavropol State Agrarian University, Stavropol, Russia)

  • Wim Heijman

    (Department of Social Sciences, Wageningen University, Wageningen, the Netherlands)

Abstract

The paper aims at the overview of the main approaches of state support implemented by developed and developing countries and the assessment of their distorting influences on the trade with agricultural commodities. The current state of state support is analyzed on the examples of EU-27, the USA and Japan. The experiences of developing countries are summarized on the examples of China, Russia and the CIS countries. State support tools are grouped according to the WTO classification. The alternative classification is implemented in order to compare the distorting effects caused by the state support. The EPACIS model is implemented to analyze the effects of trade liberalization for the distribution of agricultural commodities and trade policies in developing countries. The model is adjusted in order to assess the effects of state support for the production and trade with agricultural commodities in developing countries, recently accessed the WTO (the case of Russia). Imitation calculations allow formulating policies for the developing agricultural markets depending on the degrees of their sensitivity to foreign trade regulations and domestic support.

Suggested Citation

  • Vasily Erokhin & Anna Ivolga & Wim Heijman, 2014. "Trade liberalization and state support of agriculture: effects for developing countries," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 60(11), pages 524-537.
    • Handle: RePEc:caa:jnlage:v:60:y:2014:i:11:id:137-2013-agricecon
    DOI: 10.17221/137/2013-AGRICECON
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    References listed on IDEAS

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    1. Kym Anderson & Betina Dimaranan & Joe Francois & Tom Hertel & Bernard Hoekman & Will Martin, 2001. "The Cost of Rich (and Poor) Country Protection to Developing Countries," Journal of African Economies, Centre for the Study of African Economies, vol. 10(3), pages 227-257.
    2. Peter S. Liapis, 2011. "Changing Patterns of Trade in Processed Agricultural Products," OECD Food, Agriculture and Fisheries Papers 47, OECD Publishing.
    3. Alessandro ANTIMIANI & Anna CARBONE & Valeria COSTANTINI & Roberto HENKE, 2012. "Agri-food exports in the enlarged European Union," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 58(8), pages 354-366.
    4. Vasily Erokhin & Anna Ivolga, 2012. "How to Ensure Sustainable Development of Agribusiness in the Conditions of Trade Integration: Russian Approach," International Journal of Sustainable Economies Management (IJSEM), IGI Global, vol. 1(2), pages 12-23, April.
    5. Tim Josling & Kym Anderson & Andrew Schmitz & Stefan Tangermann, 2010. "Understanding International Trade in Agricultural Products: One Hundred Years of Contributions by Agricultural Economists," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(2), pages 424-446.
    6. Peter Wehrheim & Peter Wobst, 2005. "The economic role of Russia's subsistence agriculture in the transition process," Agricultural Economics, International Association of Agricultural Economists, vol. 33(1), pages 91-105, July.
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    Cited by:

    1. Hasan Arisoy, 2020. "Impact of agricultural supports on competitiveness of agricultural products," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(6), pages 286-295.
    2. Xiaolin TANG & Jieqiong WANG & Biao ZHANG & Lingxian ZHANG, 2017. "Application of the DEA on the performance evaluation of the agricultural support policy in China," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 63(11), pages 510-523.

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