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Tariff protection elimination and Common Agricultural Policy reform: implications of changes in methods of import demand modelling

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  • Alexandre Gohin
  • Herve Guyomard
  • Chantal Le Mouël

Abstract

The study proposes a way for accommodating the traditional Armington assumption to capture the possibility for a country to import imperfect substitutes as well as perfect substitutes for domestically produced goods. When this possibility is incorporated into a modelling framework, then a Common Agricultural Policy elimination scenario, including the setting to zero of import tariffs, would have starker implications than many studies suggest. To illustrate this point, a Computable General Equilibrium (CGE) model of the French economy is used, highlighting agricultural and food sectors. The study analyses the consequences for the French economy of a complete liberalization scenario in the European sector of cereals.

Suggested Citation

  • Alexandre Gohin & Herve Guyomard & Chantal Le Mouël, 2006. "Tariff protection elimination and Common Agricultural Policy reform: implications of changes in methods of import demand modelling," Applied Economics, Taylor & Francis Journals, vol. 38(13), pages 1527-1539.
    • Handle: RePEc:taf:applec:v:38:y:2006:i:13:p:1527-1539
    DOI: 10.1080/00036840500414609
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    2. Forslund, Agneta & Gohin, Alexandre & Le Mouël, Chantal & Levert, Fabrice, 2014. "Biodiesel vs. ethanol, UE vs. US biofuels: So different in terms of LUC impact?," Working Papers 207810, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).
    3. Cranfield, John & Preckel, Paul & Hertel, Thomas, 2006. "Poverty Analysis Using an International Cross-Country Demand System," GTAP Working Papers 2211, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    4. Alexandre Gohin, 2008. "Impacts of the European Biofuel Policy on the Farm Sector: A General Equilibrium Assessment," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(4), pages 623-641.
    5. Antonella Finizia & Riccardo Magnani & Federico Perali & Paolo Polinori, 2005. "The Meg-Ismea Model for Analysis of Italy’s Agricultural Policies," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 4, November.
    6. Fofana, Ismaël & Cockburn, John & Decaluwé, Bernard & Mabugu, Ramos & Chitiga, Margaret & Latigo, Alfred & Abdourahman, Omar, 2006. "A Gender-Aware Integrated Macro-Micro Model for Evaluating Impacts of Policies on Poverty Reduction in Africa: The Case of South Africa," Conference papers 331562, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

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