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Estimating Trade, Welfare, and Poverty Effects of Trade Policy Reforms

In: Agricultural Trade, Policy Reforms, and Global Food Security

Author

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  • Kym Anderson

    (University of Adelaide
    Australian National University)

Abstract

Global economy-wide modeling results suggest that reforms over the two decades to 2004 brought the world a remarkable three-fifths of the way toward free trade when measured in terms of global economic welfare, benefitting developing countries proportionately more than high-income countries. Had the remaining policies as of 2004 also been liberalized, developing countries would have gained nearly twice as much as high-income countries, further closing the income gap between high-income and developing countries. Of those prospective welfare gains from completing the global trade liberalization process, two-thirds would be generated by agricultural policy changes, even though agriculture and food account for less than one-tenth of global GDP and trade. Such is the degree of distortions still remaining in agricultural markets compared with those in other sectors.

Suggested Citation

  • Kym Anderson, 2016. "Estimating Trade, Welfare, and Poverty Effects of Trade Policy Reforms," Palgrave Studies in Agricultural Economics and Food Policy, in: Agricultural Trade, Policy Reforms, and Global Food Security, chapter 0, pages 113-153, Palgrave Macmillan.
    • Handle: RePEc:pal:psachp:978-1-137-46925-0_6
    DOI: 10.1057/978-1-137-46925-0_6
    as

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