IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i8p4107-d531557.html
   My bibliography  Save this article

Food Trade Openness and Enhancement of Food Security—Partial Equilibrium Model Simulations for Selected Countries

Author

Listed:
  • Eihab Fathelrahman

    (Al Magam Campus, College of Food and Agriculture (CFA), United Arab Emirates University, Al Ain 15551, United Arab Emirates)

  • Stephen Davies

    (International Food Policy Research Institute, Islamabad 44000, Pakistan)

  • Safdar Muhammad

    (Al Magam Campus, College of Food and Agriculture (CFA), United Arab Emirates University, Al Ain 15551, United Arab Emirates)

Abstract

This research measured the welfare impacts of food trade liberalization in India, Egypt, Pakistan, Saudi Arabia, and the United Arab Emirates (UAE) using the partial equilibrium model—World Integrated Trade Solution (WITS). Macroeconomic settings, domestic policy objectives, and food security indicator data are used to assess the implications of the simulations on food availability and stability. Simulation results for India, Egypt, and Pakistan indicate annual welfare gains (consumer surplus) of 2571, 340, and 25 million USD, respectively, while Saudi Arabia and the UAE have gains of 14 and 17 million USD. Results show that tariff elimination would have wide-ranging welfare impacts across food commodities within these countries. Moreover, reductions for specific commodities directly relevant to food energy and protein availability would have a greater direct impact on the poor. Lowering the highest tariffs on those commodities might raise the real incomes of more than 350 million persons by 7.5% or more and could create shifts in consumption towards more diversified and nutritionally sound diets.

Suggested Citation

  • Eihab Fathelrahman & Stephen Davies & Safdar Muhammad, 2021. "Food Trade Openness and Enhancement of Food Security—Partial Equilibrium Model Simulations for Selected Countries," Sustainability, MDPI, vol. 13(8), pages 1-20, April.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:8:p:4107-:d:531557
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/8/4107/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/8/4107/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Richard Baldwin, 2016. "The World Trade Organization and the Future of Multilateralism," Journal of Economic Perspectives, American Economic Association, vol. 30(1), pages 95-116, Winter.
    2. Ms. Maria-Angels Oliva, 2000. "Estimation of Trade Protection in Middle East and North African Countries," IMF Working Papers 2000/027, International Monetary Fund.
    3. Petrolia, Daniel R. & Kennedy, P. Lynn, 2003. "Increasing the United States Tariff-Rate Sugar Quota for Cuba and Mexico: A Partial-Equilibrium Simulation," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 35(3), pages 589-597, December.
    4. Artuc, Erhan & Porto, Guido & Rijkers, Bob, 2019. "Trading off the income gains and the inequality costs of trade policy," Journal of International Economics, Elsevier, vol. 120(C), pages 1-45.
    5. Clapp, Jennifer, 2017. "Food self-sufficiency: Making sense of it, and when it makes sense," Food Policy, Elsevier, vol. 66(C), pages 88-96.
    6. Löfgren, Hans & Richards, Alan, 2003. "Food security, poverty, and economic policy in the Middle East and North Africa," TMD discussion papers 111, International Food Policy Research Institute (IFPRI).
    7. Spielman, David J. & Malik, Sohail Jehangir & Dorosh, Paul A. & Ahmad, Nuzhat, 2017. "Agriculture and the rural economy in Pakistan: Issues, outlooks, and policy priorities: Synopsis," IFPRI synopses 978-0-89629-239-0, International Food Policy Research Institute (IFPRI).
    8. Harinder Kohli & Ashok Sharma & Anil Sood & Haruhiko Kuroda, 2011. "Asia 2050: Realizing the Asian Century: Overview," Other Working Papers asia2050overview, Emerging Markets Forum.
    9. Vincent H. Smith & Joseph W. Glauber, 2020. "Trade, policy, and food security," Agricultural Economics, International Association of Agricultural Economists, vol. 51(1), pages 159-171, January.
    10. Moon, Wanki & Koo, Won W. & Kim, Chang-Gil, 2011. "New Global Governance For Agriculture, Climate Change, Sustainability, And Food Security," Journal of Rural Development/Nongchon-Gyeongje, Korea Rural Economic Institute, vol. 34(2), pages 1-29, June.
    11. Kym Anderson, 2016. "Agricultural Trade, Policy Reforms, and Global Food Security," Palgrave Studies in Agricultural Economics and Food Policy, Palgrave Macmillan, number 978-1-137-46925-0, November.
    12. Dithmer, Jan & Abdulai, Awudu, 2017. "Does trade openness contribute to food security? A dynamic panel analysis," Food Policy, Elsevier, vol. 69(C), pages 218-230.
    13. Giorgia Giovannetti & Enrico Marvasi & Arianna Vivoli, 2020. "The asymmetric effects of twenty years of tariff reforms on Egyptian workers," Working Papers LuissLab 20156, Dipartimento di Economia e Finanza, LUISS Guido Carli.
    14. Tanaka, Tetsuji & Hosoe, Nobuhiro, 2011. "Does agricultural trade liberalization increase risks of supply-side uncertainty?: Effects of productivity shocks and export restrictions on welfare and food supply in Japan," Food Policy, Elsevier, vol. 36(3), pages 368-377, June.
    15. Agnieszka Poczta-Wajda, & Agnieszka Sapa, 2017. "Potential Trade Effects Of Tariff Liberalization Under The Transatlantic Trade And Investment Partnership (Ttip) For The Eu Agri-Food Sector," Journal of Agribusiness and Rural Development, University of Life Sciences, Poznan, Poland, vol. 44(2), June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tomáš Loveček & Lenka Straková & Katarína Kampová, 2021. "Modeling and Simulation as Tools to Increase the Protection of Critical Infrastructure and the Sustainability of the Provision of Essential Needs of Citizens," Sustainability, MDPI, vol. 13(11), pages 1-18, May.
    2. Mohammad Hasan Mobarok & Wyatt Thompson & Theodoros Skevas, 2021. "COVID-19 and Policy Impacts on the Bangladesh Rice Market and Food Security," Sustainability, MDPI, vol. 13(11), pages 1-18, May.
    3. Jun Ho Seok & Soo‐Eun Kim, 2023. "The effect of agricultural trade openness on fruit prices in Korea," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 37(2), pages 165-179, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marta Marson & Donatella Saccone & Elena Vallino, 2023. "Total trade, cereals trade and undernourishment: new empirical evidence for developing countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 159(2), pages 299-332, May.
    2. Mary, Sébastien, 2018. "Does Agricultural (Food) Trade Openness Reduce Child Stunting?," 2018 Annual Meeting, August 5-7, Washington, D.C. 274282, Agricultural and Applied Economics Association.
    3. Jin Guo & Tetsuji Tanaka, 2020. "The Effectiveness of Self-Sufficiency Policy: International Price Transmissions in Beef Markets," Sustainability, MDPI, vol. 12(15), pages 1-23, July.
    4. Svanidze, Miranda & Götz, Linde & Djuric, Ivan & Glauben, Thomas, 2019. "Food security and the functioning of wheat markets in Eurasia: a comparative price transmission analysis for the countries of Central Asia and the South Caucasus," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 11(3), pages 733-752.
    5. Jin Guo & Tetsuji Tanaka, 2020. "Examining the determinants of global and local price passthrough in cereal markets: evidence from DCC-GJR-GARCH and panel analyses," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 8(1), pages 1-22, December.
    6. Traverso, Silvio & Schiavo, Stefano, 2020. "Fair trade or trade fair? International food trade and cross-border macronutrient flows," World Development, Elsevier, vol. 132(C).
    7. Jerome Dumortier & Miguel Carriquiry & Amani Elobeid, 2021. "Impact of climate change on global agricultural markets under different shared socioeconomic pathways," Agricultural Economics, International Association of Agricultural Economists, vol. 52(6), pages 963-984, November.
    8. Virginia Small & James Warn, 2020. "Impacts on food policy from traditional and social media framing of moral outrage and cultural stereotypes," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 37(2), pages 295-309, June.
    9. repec:zbw:iamodp:285032 is not listed on IDEAS
    10. Maximilian Koppenberg & Martina Bozzola & Tobias Dalhaus & Stefan Hirsch, 2021. "Mapping potential implications of temporary COVID‐19 export bans for the food supply in importing countries using precrisis trade flows," Agribusiness, John Wiley & Sons, Ltd., vol. 37(1), pages 25-43, January.
    11. Huw Lloyd-Ellis & Ardyn Nordstrom, 2021. "Trade, poverty and food security: A survey of recent research and its implications for East Africa," Working Paper 1460, Economics Department, Queen's University.
    12. Zolfaghari, Mehdi & Jariani, Farzaneh, 2021. "Food Security in the Middle East and North Africa (MENA)," MPRA Paper 105078, University Library of Munich, Germany.
    13. Maria Christoforidou & Gerlo Borghuis & Chris Seijger & Gerardo E. Halsema & Petra Hellegers, 2023. "Food security under water scarcity: a comparative analysis of Egypt and Jordan," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 15(1), pages 171-185, February.
    14. Jin Guo & Tetsuji Tanaka, 2019. "Determinants of international price volatility transmissions: the role of self-sufficiency rates in wheat-importing countries," Palgrave Communications, Palgrave Macmillan, vol. 5(1), pages 1-13, December.
    15. Jean Pierre Enriquez, 2020. "Food Self-Sufficiency - Opportunities and Challenges for the Current Food System," Biomedical Journal of Scientific & Technical Research, Biomedical Research Network+, LLC, vol. 31(2), pages 23984-23989, October.
    16. Tetsuji Tanaka & Jin Guo, 2020. "How does the self-sufficiency rate affect international price volatility transmissions in the wheat sector? Evidence from wheat-exporting countries," Palgrave Communications, Palgrave Macmillan, vol. 7(1), pages 1-13, December.
    17. Sébastien Mary, 2019. "Hungry for free trade? Food trade and extreme hunger in developing countries," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 11(2), pages 461-477, April.
    18. Do, Manh Hung & Nguyen, Trung Thanh & Grote, Ulrike, 2023. "Land consolidation, rice production, and agricultural transformation: Evidence from household panel data for Vietnam," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 157-173.
    19. Brambilla, Irene & Porto, Guido, 2016. "Trade, Poverty Eradication, and the Sustainable Development Goals," ADBI Working Papers 629, Asian Development Bank Institute.
    20. Palatnik, Ruslana R. & Kan, Iddo & Rapaport-Rom, Mickey & Ghermandi, Andrea & Eboli, Fabio & Shechter, Mordechai, 2011. "Land transformation analysis and application," Conference papers 332155, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    21. Eckart Woertz, 2020. "Wither the self-sufficiency illusion? Food security in Arab Gulf States and the impact of COVID-19," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 12(4), pages 757-760, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:13:y:2021:i:8:p:4107-:d:531557. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.