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An Empirical Assessment of Agricultural Trade Policies in the Mediterranean Basin - Regional Effects on the EU Member States

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  • Kavallari, Aikaterini
  • Schmitz, P. Michael

Abstract

The objective of this paper is to provide deeper insights on the impacts of agricultural policy reforms in the Mediterranean basin focusing on regional effects in the EU. The empirical analysis has been undertaken using the partial equilibrium multi commodity, multi region world trade model AGRISIM. The simulation results indicated that the CAP Reform for the Mediterranean commodities seems to affect only the EU Mediterranean Member states and the enlargement with Bulgaria and Romania only this two countries. Moreover the impacts on the markets of typical Mediterranean commodities included in the modelling exercise are limited. The supply in the EU changes mainly for those commodities that are of high protection as beef, whereas the demand increases being highest for beef. The prices adjust to the world market prices resulting thus to negative changes for the producer's surplus, but to positive for the consumer's surplus. The effects for the EU budget are also positive and overall welfare gains are to be expected.

Suggested Citation

  • Kavallari, Aikaterini & Schmitz, P. Michael, 2007. "An Empirical Assessment of Agricultural Trade Policies in the Mediterranean Basin - Regional Effects on the EU Member States," 103rd Seminar, April 23-25, 2007, Barcelona, Spain 9395, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa103:9395
    DOI: 10.22004/ag.econ.9395
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    References listed on IDEAS

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    Cited by:

    1. Britz, Wolfgang & Heckelei, Thomas, 2008. "Recent Developments In Eu Policies – Challenges For Partial Equilibrium Models," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6315, European Association of Agricultural Economists.
    2. Jose‐Maria Garcia‐Alvarez‐Coque & Victor Martinez‐Gomez & Miquel Villanueva, 2010. "Seasonal protection of F&V imports in the EU: impacts of the entry price system," Agricultural Economics, International Association of Agricultural Economists, vol. 41(2), pages 205-218, March.

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