IDEAS home Printed from https://ideas.repec.org/p/ags/iaaeo6/197733.html
   My bibliography  Save this paper

Impact of the EC's Rebalancing Strategy on Developing Countries: The Case of Feed

Author

Listed:
  • Hartmann, Monika
  • Schmitz, Peter Michael

Abstract

This paper analyses the effects of a rebalancing policy for the EC feed sector on the less developed countries. The theoretical part of the study reveals that evaluation of changing world market prices from the developing countries' perspective depends on the trade position of the LDCs in the relevant markets, on home-made distortions in the poor countries, as well as an the degree of insulation of domestic markets from the world market. These findings are supported by the empirical results presented in the paper. Using the sequential approach based on the Hicksian compensated curves of the new welfare economics, the efficiency effects due to a rebalancing policy in the EC feed sector are calculated for 16 developing countries/regions. These countries/regions cover about 98 percent of the developing world. The results show that, depending on the assumed world price transmission elasticity as well as on the application or absence of national agricultural policies in the countries considered, the developing world as a group would have to bear new welfare losses of between US$519 million and US$789 million. These welfare effects would not be spread evenly over the countries under consideration. While most developing countries and regions would experience a substantial decrease in their net economic welfare, some countries would enjoy considerable welfare gains.

Suggested Citation

  • Hartmann, Monika & Schmitz, Peter Michael, 1992. "Impact of the EC's Rebalancing Strategy on Developing Countries: The Case of Feed," 1992 Occasional Paper Series No. 6 197733, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaaeo6:197733
    DOI: 10.22004/ag.econ.197733
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/197733/files/agecon-occpapers-1992-009_1_.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.197733?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Rod Tyers, 1989. "Developing Country Interests in Agricultural Trade Reform," Agricultural Economics, International Association of Agricultural Economists, vol. 3(3), pages 169-186, October.
    2. Louis-Pascal Mahe, 1984. "A lower but more balanced protection for European agriculture," Post-Print hal-02416823, HAL.
    3. Mahe, Louis P, 1984. "A Lower but More Balanced Protection for European Agriculture," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 11(2), pages 217-234.
    4. Mahe, L P & Tavera, C, 1988. "Bilateral Harmonization of EC and U.S. Agricultural Policies," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 15(4), pages 327-348.
    5. Bela Balassa, 1988. "Interest of Developing Countries in the Uruguay Round," The World Economy, Wiley Blackwell, vol. 11(1), pages 39-54, March.
    6. World Bank, 1986. "World Development Report 1986," World Bank Publications - Books, The World Bank Group, number 5969.
    7. Krueger, Anne O & Schiff, Maurice & Valdes, Alberto, 1988. "Agricultural Incentives in Developing Countries: Measuring the Effect of Sectoral and Economywide Policies," The World Bank Economic Review, World Bank, vol. 2(3), pages 255-271, September.
    8. Monika Hartmann, 1991. "Old wine in new bottles: Agricultural protectionism in the EC," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 26(2), pages 58-63, March.
    9. Koester, Ulrich, 1982. "Policy options for the grain economy of the European Community: implications for developing countries," Research reports 35, International Food Policy Research Institute (IFPRI).
    Full references (including those not matched with items on IDEAS)

    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. Hartmann, Monika & Schmitz, P. Michael, 1991. "Impact Of Ec'S Rebalancing Strategy On Developing Countries: The Case Of Feed," Staff Papers 14085, University of Minnesota, Department of Applied Economics.
    2. Anderson, Margot, 1993. "Ethanol Production, Corn Gluten Feed, and EC Trade," Agricultural Information Bulletins 309692, United States Department of Agriculture, Economic Research Service.
    3. Wiebelt, M, 1990. "The Incidence of Industrial Import Protection on Agricultural Exports: A Comparative Analysis with Special Reference to Zimbabwe," 1990 Symposium, Agricultural Restructuring in Southern Africa, July 24-27, 1990, Swakopmund, Namibia 183489, International Association of Agricultural Economists.
    4. M. Wiebelt, 1992. "The Sectoral Incidence Of Protection And Zimbabwean Agriculture," Journal of Agricultural Economics, Wiley Blackwell, vol. 43(2), pages 205-217, May.
    5. Tyers, Rodney, 1991. "On The Neglect Of Dynamics, Risk And Market Insulation In The Analysis Of Uruguay Round Food Trade Reforms," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 35(3), pages 1-19, December.
    6. von Witzke, Harald & Houck, James P., 1987. "Economic Effects Of Possible European Community Market Intervention In Soybeans And Their Products," Staff Papers 14147, University of Minnesota, Department of Applied Economics.
    7. Tyers, Rodney, 1990. "Searching Under The Light: The Neglect Of General Equilibrium, Dynamics And Risk In The Analysis Of Food Trade Reforms," Staff Papers 13845, University of Minnesota, Department of Applied Economics.
    8. Eve Fouilleux & . Revue Politiques Et Management Public,paris (fra), 1996. "D'une européanisation l'autre : la Politique Agricole Commune entre permanences et innovations," Post-Print hal-02283450, HAL.
    9. Herrmann, Roland & Schenck, Patricia & Wiebelt, Manfred, 1990. "On the measurement of agricultural protection: how price uncertainty and limited substitution matter," Kiel Working Papers 414, Kiel Institute for the World Economy (IfW Kiel).
    10. 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, June.
    11. Romeo M. BAUTISTA, 1998. "Effects Of Domestic Policies And External Factors On Agricultural Prices: Cassava And Soybeans In Indonesia," The Developing Economies, Institute of Developing Economies, vol. 36(2), pages 155-177, June.
    12. Steven M. Helfand & Gervásio Castro de Rezende, 2004. "The Impact of Sector‐Specific and Economy‐Wide Policy Reforms on the Agricultural Sector in Brazil: 1980–98," Contemporary Economic Policy, Western Economic Association International, vol. 22(2), pages 194-212, April.
    13. Yves Dronne & Christophe Tavéra, 1988. "Dynamic relationships between world prices of cakes, corn-gluten-feed and cassava," Working Papers hal-01937039, HAL.
    14. Schrader, Jörg-Volker, 1990. "EC agricultural trade policies towards developing countries," Kiel Working Papers 454, Kiel Institute for the World Economy (IfW Kiel).
    15. Shagam, Shayle D., 1990. "The World Pork Market-Government Intervention and Multilateral Policy Reform," Staff Reports 278313, United States Department of Agriculture, Economic Research Service.
    16. Díaz-Bonilla, Eugenio & Ron, Juan Francisco, 2010. "Food Security, Price Volatility and Trade: Some Reflections for Developing Countries," Price Volatility and Beyond 320195, International Centre for Trade and Sustainable Development (ICTSD).
    17. Schiff, Maurice & Valdes, Alberto, 1998. "Agriculture and the macroeconomy," Policy Research Working Paper Series 1967, The World Bank.
    18. Catherine Araujo-Bonjean & Gérard Chambas, 2001. "Le paradoxe de la fiscalité agricole en Afrique subsaharienne," Revue Tiers Monde, Programme National Persée, vol. 42(168), pages 773-788.
    19. Barrett, Christopher B., 1999. "The effects of real exchange rate depreciation on stochastic producer prices in low-income agriculture," Agricultural Economics, Blackwell, vol. 20(3), pages 215-230, May.
    20. Mahe, L P & Tavera, C, 1988. "Bilateral Harmonization of EC and U.S. Agricultural Policies," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 15(4), pages 327-348.

    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:ags:iaaeo6:197733. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    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.