Download Agricultural Price Distortions, Inequality, and Poverty by Kym Anderson PDF

By Kym Anderson

ISBN-10: 0821381849

ISBN-13: 9780821381847

Alternate coverage reforms in contemporary a long time have sharply lowered the distortions that have been harming agriculture in constructing international locations. but international exchange in farm items is still way more distorted than exchange in nonfarm items, and in ways in which decrease a few different types of poverty and inequality yet irritate others, so the internet results are uncertain with no empirical modeling. utilizing a brand new set of estimates of agricultural fee distortions, this e-book brings jointly economy-wide international and nationwide empirical stories that target the internet results of the remainder distortions to global item alternate on poverty and inequality globally and in numerous constructing nations. the worldwide LINKAGE version effects recommend that removal final distortions would cut back overseas inequality, mostly via boosting web farm earning and elevating genuine wages for unskilled employees in constructing international locations, and would scale back the variety of terrible humans around the globe through three percentage. The research in accordance with the worldwide alternate research venture (GTAP) version for a pattern of 15 international locations, and ten stand-alone nationwide case reviews from 3 continents, recommend even greater savings in poverty. this can be particularly so if in basic terms the non-poor are subjected to elevated source of revenue taxation to catch up on the lack of exchange tax profit. the quantity attracts out the results for coverage reforms in constructing international locations, pointing to ways that complementary family regulations can elevate the chance that releasing markets for farm items and different items would cut back either poverty and inequality.

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Extra info for Agricultural Price Distortions, Inequality, and Poverty (World Bank Trade and Development Series)

Sample text

In an econometric analysis of historical data, Topalova (2007) concludes that the reductions in agricultural protection associated with India’s tariff reforms of the 1990s increased national poverty. 2 and 1 hectare, and 49 percent of those with more than 1 hectare) would have lost from increases in the prices of staple foods during 2007–08. According to their data, this is because even the smallest farmers receive only about half their Introduction and Summary 23 incomes from farming. Unfortunately, we have been unable to locate an appropriate model or commission a study for India to include in part III.

The contribution of farm and food policies to the welfare cost of global trade-distorting policies in developing countries alone is estimated by these authors to be even greater, at 83 percent, of which a little more than one-third is generated by the policies of the developing countries themselves. Nonetheless, the price distortion estimates used in the modeling study (see Anderson and Valenzuela 2008) show that many developing countries protect their less-competitive farmers from import competition; so, some of this subset of farmers might be hurt if all markets were opened.

A. Nominal unskilled wage deflated by the food and clothing consumer price index. 3. 7 percent). The GIDD model results Bussolo, De Hoyos, and Medvedev, in chapter 3, make direct use of the global CGE Linkage model, but combine it with the newly developed GIDD tool (Bussolo, De Hoyos, and Medvedev 2008). The GIDD is a framework for ex ante analysis of the effects on income distribution and poverty of changes in macroeconomic, trade, and sectoral policies or trends in global markets. It thus offers an alternative to the elasticity approach adopted in chapter 2.

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