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Agricultural Trade Liberalization and Low Income Countries: A General Equilibrium-Multimarket Approach

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  • Elisabeth Sadoulet
  • Alain de Janvry

Abstract

Integrated multimarket-general-equilibrium models are constructed to analyze the impact on poor cereal importers of rising world prices following OECD trade liberalization. Archetypes contrast African countries in which cereal imports are not competitive with domestic production (Africa I) to African and Asian countries where they are competitive. Results show rising food import bills and exchange rate depreciation in Africa I and the opposite in the other two regions. Policy implications include promoting agricultural exports from Africa I and promoting food crops for import substitution in the other regions. Food aid needed to shelter the poor during the transition period is calculated.

Suggested Citation

  • Elisabeth Sadoulet & Alain de Janvry, 1992. "Agricultural Trade Liberalization and Low Income Countries: A General Equilibrium-Multimarket Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(2), pages 268-280.
    • Handle: RePEc:oup:ajagec:v:74:y:1992:i:2:p:268-280.
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    Cited by:

    1. Arndt, Channing & Tarp, Finn, 2001. "Who gets the goods? A general equilibrium perspective on food aid in Mozambique," Food Policy, Elsevier, vol. 26(2), pages 107-119, April.
    2. Anania, Giovanni, 2001. "Modeling Agricultural Trade Liberalization. A Review," 2001 Annual meeting, August 5-8, Chicago, IL 20758, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Carl GAIGNÉ & Cathie LAROCHE DUPRAZ & Alan MATTHEWS, 2015. "Thirty years of European research on international trade in food and agricultural products," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 96(1), pages 91-130.
    4. Filipski, Mateusz & Aboudrare, Abdellah & Lybbert, Travis J. & Taylor, J. Edward, 2015. "Spice Price Spikes: Simulating Gendered Impacts of a Saffron Boom and Bust in Rural Mexico," 2015 Conference, August 9-14, 2015, Milan, Italy 229066, International Association of Agricultural Economists.
    5. Mathilde Douillet, 2011. "What are the agricultural exports growth perspectives offered to sub-Saharan countries by current trade negotiations?," EcoMod2011 3116, EcoMod.
    6. Khalifa, Ali Abd Elaal & El-Batran, Mohsen Mahmoud & Atta, Sahra Khaleel & Shehata, Emad Abd Elmessih, 2003. "دراسة قياسية لسوق العمل فى مصر بإستخدام نموذج التوازن العام [An Econometric Study for Labor Market in Egypt by Using the General Equilibrium Model]," MPRA Paper 42605, University Library of Munich, Germany, revised 24 Sep 2003.
    7. Mendola, Mariapia & Simtowe, Franklin, 2015. "The Welfare Impact of Land Redistribution: Evidence from a Quasi-Experimental Initiative in Malawi," World Development, Elsevier, vol. 72(C), pages 53-69.
    8. repec:ags:bdbjaf:279932 is not listed on IDEAS
    9. Francisco J. Castellano-Álvarez & Francisco M. Parejo-Moruno & J. Francisco Rangel-Preciado & Esteban Cruz-Hidalgo, 2021. "Regulation of Agricultural Trade and Its Implications in the Reform of the CAP. The Continental Products Case Study," Agriculture, MDPI, vol. 11(7), pages 1-18, July.
    10. de Janvry, Alain & Sadoulet, Elisabeth, 2000. "Rural poverty in Latin America: Determinants and exit paths," Food Policy, Elsevier, vol. 25(4), pages 389-409, August.
    11. de Janvry, Alain & Sadoulet, Elisabeth, 1996. "Household Modeling For The Design Of Poverty Alleviation Strategies," CUDARE Working Papers 25121, University of California, Berkeley, Department of Agricultural and Resource Economics.
    12. Salvator Nkunzimana & H. Alan Love & C. Richard Shumway, 2003. "Mexican agricultural trade under the GATT," Applied Economics, Taylor & Francis Journals, vol. 35(4), pages 449-459.
    13. Douillet, Mathilde, 2012. "Trade policies and agricultural exports of Sub-Saharan African countries: Some stylized facts and perspectives," MPRA Paper 40962, University Library of Munich, Germany.
    14. Filipski, Mateusz & Aboudrare, Abdellah & Lybbert, Travis J. & Taylor, J. Edward, 2017. "Spice Price Spikes: Simulating Impacts of Saffron Price Volatility in a Gendered Local Economy-Wide Model," World Development, Elsevier, vol. 91(C), pages 84-99.
    15. Mendola, Mariapia, 2007. "Agricultural technology adoption and poverty reduction: A propensity-score matching analysis for rural Bangladesh," Food Policy, Elsevier, vol. 32(3), pages 372-393, June.
    16. Reimer, Jeffrey J., 2002. "Estimating the poverty impacts of trade liberalization," Policy Research Working Paper Series 2790, The World Bank.
    17. Gelan, Ayele Ulfata, 2007. "Does food aid have disincentive effects on local production? A general equilibrium perspective on food aid in Ethiopia," Food Policy, Elsevier, vol. 32(4), pages 436-458, August.
    18. Muryani, 2014. "The Impact of Bird Flu on the Economy: CGE Model Approach (Computable General Equilibrium Model)," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(8), pages 1062-1078, August.
    19. Tarp, Finn & Arndt, Channing & Jensen, Henning Tarp & Robinson, Sherman & Heltberg, Rasmus, 2002. "Facing the development challenge in Mozambique: an economywide perspective," Research reports 126, International Food Policy Research Institute (IFPRI).
    20. Douillet, Mathilde, 2012. "Trade policy reforms in the new agricultural context: Is regional integration a priority for Sub-Saharan African countries agricultural-led industrialization? Insights from a global computable general," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126546, International Association of Agricultural Economists.
    21. Thomas W. Hertel & Jeffrey J. Reimer, 2006. "Predicting the Poverty Impacts of Trade Reform," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 2, May.
    22. Mariapia MENDOLA, 2005. "Agricultural technology and poverty reduction: a micro-level analysis of causal effects," Departmental Working Papers 2005-14, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    23. Mariapia Mendola, 2003. "Agricultural Technology and Povertry Reduction: A Micro-Level Analysis of Causal Effects," Development Working Papers 179, Centro Studi Luca d'Agliano, University of Milano.

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