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1. Competitive Productivism and Australia's Emerging 'Alternative' Agri-food Networks: producing for farmers' markets in Victoria and beyond.

Author

Andrée, Peter, Dibden, Jacqui, Higgins, Vaughan, and Cocklin, Chris

Subjects
*ALTERNATIVE agriculture, *POLITICAL economic analysis, *FARMERS, *CONSUMERS
Abstract

This paper advances the theoretical argument for moving beyond the conventional/alternative divide in the analysis of emerging 'alternative' agri-food networks (AAFNs). In order to understand how 'place', 'nature' and 'quality'-based food networks emerge and develop, we argue that careful attention needs to be paid to the way in which specific political-economic environments shape the options available to farmers and consumers. Australia's 'competitive productivism' is the outcome of an export-oriented economy and a neoliberal political orientation, and this environment affects the development of AAFNs in various ways. Most notably, a case study of farmers that sell at farmers' markets in the State of Victoria shows that the competitive-productivist policies pursued by Australian governments entice some farmers who participate in AAFNs to develop their ideas into higher output businesses tailored to compete in emerging export markets. Other farmers deliberately choose to keep marketing through alternative channels despite competitive-productivist pressures to expand. These findings demonstrate the centrality to the experience of AAFN participants of negotiating productivist pressures, adding nuances to the story of the complex relations between AAFNs and conventional supply chains. [ABSTRACT FROM AUTHOR]

Published
2010
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2. Agricultural Price Distortions, Inequality, and Poverty : Introduction and Summary

Author

Anderson, Kym, Cockburn, John, and Martin, Will

Subjects
REDUCTION IN POVERTY, CUSTOMS, NONFARM INCOME, INTERNATIONAL CAPITAL FLOWS, PRICE SUBSIDIES, SOCIAL PROGRAMS, GLOBAL POVERTY, VALUE ADDED, EXTREME POVERTY, WORLD TRADE, DISTRIBUTIONAL EFFECTS, HOUSEHOLD INCOMES, TRADE POLICY REFORM, COMMODITIES, AGRICULTURAL LAND, CONSUMER PRICES, TRADE DISTORTIONS, NATIONAL ECONOMIES, UNEMPLOYMENT, INCOME, AGRICULTURAL SECTORS, FARM INCOME, TRADE NEGOTIATIONS, FARM INCOMES, URBANIZATION, POOR FARM HOUSEHOLDS, HOUSEHOLD CONSUMPTION, FARM WORK, FARMERS, CONSTANT RETURNS TO SCALE, SKILLED WORKERS, PRICE INCREASES, POVERTY IMPACT, EMERGING ECONOMIES, MULTILATERAL AGREEMENTS, REGIONAL AVERAGES, LOW-INCOME COUNTRIES, REGIONAL AVERAGE, GLOBAL ECONOMY, DEMAND CURVE, PURCHASING POWER, TRADE BARRIERS, RURAL POOR, NATIONAL POVERTY LINE, EXCHANGE RATE REGIMES, POVERTY LEVEL, INCOME INEQUALITY, INFRASTRUCTURE INVESTMENTS, ELASTICITY, INCOME TAXES, DEVELOPMENT POLICY, POVERTY REDUCTION, POLITICAL ECONOMY ANALYSIS, CAPITAL OWNERS, IMPORT BARRIERS, MULTILATERAL TRADE REFORM, MULTILATERAL TRADE, TRADE IN SERVICES, WEALTH, PRODUCTIVITY GROWTH, CONSUMERS, NATIONAL POVERTY HEADCOUNT, HOUSEHOLD SURVEY, WTO, GDP, MONOPOLISTIC COMPETITION, COMMUNICATION TECHNOLOGY, FARM WORKERS, POLITICAL ECONOMY, TAXATION, ECONOMIC IMPLICATIONS, EXPORT DEMAND, INCOME TAX, EXPORTS, EXTERNAL TRADE, UNSKILLED LABOR, ECONOMETRICS, INTERNATIONAL TRADE, RURAL HUMAN CAPITAL, EXCHANGE RATE, POOR PEOPLE, AGRICULTURAL PRICES, ECONOMETRIC ANALYSIS, LIVESTOCK ACTIVITIES, MULTILATERAL TRADE NEGOTIATIONS, SOCIAL SAFETY NETS, POVERTY DATA, FARM PRODUCTS, BENCHMARK DATA, TARIFF REVENUE, TAX REVENUES, IMPORT COMPETITION, DEVELOPING COUNTRIES, GLOBAL MARKETS, REAL GDP, POVERTY LINES, TARIFF PROTECTION, ECONOMIC SIZE, GLOBALIZATION, INCOME-GENERATING ACTIVITIES, POVERTY ALLEVIATION, IMPERFECT COMPETITION, RURAL, TRADE TAXES, ECONOMIES OF SCALE, FOREIGN DEBT, HOUSEHOLD HEAD, FACTORS OF PRODUCTION, VOLATILITY, INTERNATIONAL CAPITAL, TRADE LIBERALIZATION, MARKET ACCESS, ADVERSE EFFECT, RURAL BASE, GENERAL EQUILIBRIUM, DEVELOPING COUNTRY, ECONOMIC GROWTH, ELASTICITY OF SUBSTITUTION, DOMESTIC PRICE, COMMODITY, TERMS OF TRADE, FARM LABOR, RURAL HOUSEHOLDS, EXTREME POVERTY LINE, PARTICULAR COUNTRY, POOR, CONSUMER DEMAND, HOUSEHOLD WELFARE, TRADE TAX, FINANCIAL CRISIS, CUSTOMS REVENUE, FOOD PRICES, INCOME SHOCKS, GINI COEFFICIENT, AGRICULTURAL TRADE, TRADE DATA, EXPORT TAX, TRADE POLICY, RAPID GROWTH, DISTRIBUTION OF INCOME, WORLD TRADE ORGANIZATION, INCOME DYNAMICS, POVERTY REDUCING, DEVELOPMENT ECONOMICS, EXPORT PRICES, AGRICULTURAL LIBERALIZATION, TAX REVENUE, RURAL INCOME, WAGES, SHOPS, OPEN ECONOMY, RURAL AREAS, RURAL POVERTY, LABOR MARKET, NATIONAL ECONOMY, PARTICULAR COUNTRIES, GDP PER CAPITA, DEBT, COST OF CAPITAL, MULTILATERAL TRADE AGREEMENTS, DIVIDEND, TRADE POLICIES, PROTECTIONIST, EXTREMELY POOR PEOPLE, TRADE POLICY REFORMS, AGRICULTURAL POLICY, HOUSEHOLD SURVEYS, INEQUALITY, TRADE REFORMS, GOVERNMENT BUDGETS, AGRICULTURE, AGRICULTURAL DEVELOPMENT, DEVELOPED COUNTRIES, FREE ACCESS, FREE TRADE, MACROECONOMIC POLICIES, RURAL INEQUALITY, IMPORT RESTRICTIONS, WAGE RATES, IRRIGATION, TRADE-DISTORTING POLICIES, PARTIAL EQUILIBRIUM ANALYSIS, TOTAL POVERTY, INCOME DISTRIBUTION, INTERNATIONAL ECONOMICS, NATIONAL POVERTY, GLOBAL TRADE, PRODUCT MARKETS, FARMER, BENCHMARK, GLOBAL ECONOMIC PROSPECTS, FARM HOUSEHOLDS, TRANSITION ECONOMIES, AGRICULTURAL INCOMES, POVERTY HEADCOUNT INDEX, AGRICULTURAL SECTOR, INCIDENCE OF POVERTY, HOUSEHOLD INCOME, INCOME GAP, POVERTY INCIDENCE, TECHNOLOGY TRANSFER, IMPORTS, BENEFITS OF TRADE, FOOD MARKETS, POOR HOUSEHOLDS, AGRICULTURAL PRODUCTS, POWER PARITY, PRICE DISTORTIONS, REGIONAL LEVELS, DOMESTIC PRICES, FOREIGN CURRENCY, POVERTY RATE, NATIONAL MODELS, PRICE DISTORTION, EXPORT TAXES
Abstract

Reforms in recent decades have sharply reduced the distortions affecting agriculture in developing countries, particularly by cuts to agricultural export taxes and by some reductions in government assistance to agriculture in high-income countries, but international trade in farm products continues to be far more distorted than trade in nonfarm goods. This paper summarizes a series of empirical studies that focus on the effects of the remaining distortions to world merchandise trade for poverty and inequality, especially in developing countries. To obtain different insights into the various impacts, two global studies are undertaken using the World Bank's Linkage model, one multi-country study uses the Global Trade Analysis Project (GTAP) model, and ten country case studies are also included, each using a national economy-wide model. The Linkage model results suggest that liberalization will reduce international inequality, largely by boosting farm incomes and raising real wages for unskilled workers in developing countries, and will reduce the number of poor people worldwide by 3 percent. The analysis based on the GTAP model for a sample of 15 countries, and the ten stand-alone national case studies, all point to larger reductions in poverty, especially if only the non-poor are subjected to increased income taxation to compensate for the loss of trade tax revenue.

Published
2009

3. Global Poverty and Distributional Impacts of Agricultural Distortions

Author

Bussolo, Maurizio, De Hoyos, Rafael, and Medvedev, Denis

Subjects
REDUCTION IN POVERTY, EXPORT SUBSIDIES, REAL INCOME, AGRICULTURAL REFORM, GLOBAL POVERTY, VALUE ADDED, EXTREME POVERTY, WELFARE MEASURE, DISTRIBUTIONAL EFFECTS, HOUSEHOLD INCOMES, SKILL LEVEL, POLICY REFORM, EXTREMELY POOR HOUSEHOLDS, CONSUMER PRICES, EXPORT MARKETS, NATIONAL ECONOMIES, INCOME, REAL WAGE, DECOMPOSITION ANALYSIS, AGRICULTURAL SECTORS, TRADE NEGOTIATIONS, COMPETITIVENESS, AGRICULTURAL WAGES, TARIFF RATE, CONSUMER PRICE INDEX, POOR GROWTH, PER CAPITA INCOME, TRADE AGREEMENTS, AGRICULTURAL IMPORTS, MACROECONOMIC MODELS, EMPLOYMENT IN AGRICULTURE, NEGATIVE RELATIONSHIP, POLICY REFORMS, FARMERS, SKILLED WORKERS, PRICE INCREASES, IMPORT TARIFF, INCOME SHARE, HIGHER INEQUALITY, REAL WAGES, GLOBAL ECONOMY, PURCHASING POWER, TRADE BARRIERS, LABOUR EARNINGS, INCOME INEQUALITY, STRUCTURAL CHANGE, POVERTY REDUCTION, EXPORT, INCOME LEVELS, RELATIVE WAGES, PRICE CHANGES, IMPORT BARRIERS, MULTILATERAL TRADE, WAGE PREMIUM, WEALTH, AGRICULTURAL MARKET, CONSUMERS, AGRICULTURAL PRICE SUPPORTS, COMBINES, GEOGRAPHIC REGION, CONSUMPTION DATA, INCOME DATA, WTO, ECONOMIC REVIEW, GDP, UTILITY FUNCTION, BASE YEAR, POVERTY OUTCOMES, PRICE INDICES, EXPORTS, GDP DEFLATOR, GENERAL EQUILIBRIUM MODEL, INTERNATIONAL TRADE, FARM OUTPUT, POOR PEOPLE, AGRICULTURAL PRICES, PREFERENTIAL ACCESS, FARM PRODUCTS, AGRICULTURAL GOODS, URUGUAY ROUND, CARIBBEAN REGION, INEQUALITY DECOMPOSITION, DEVELOPING COUNTRIES, GLOBAL MARKETS, HOUSEHOLD SIZE, REAL GDP, POVERTY LINES, AGRICULTURAL WAGE, INCOME DISTRIBUTIONS, POVERTY ALLEVIATION, INCREASED INEQUALITY, REGIONAL TRADING AGREEMENTS, AGRICULTURAL ACTIVITIES, TRADE NEGOTIATION, INEQUALITY COEFFICIENT, POVERTY LINE, PUBLIC GOODS, AGRICULTURAL GROUPS, INEQUALITY RESULTS, INCOME DISTRIBUTION DATA, INEQUALITY MEASURE, HOUSEHOLD HEAD, EXOGENOUS CHANGES, TRADE LIBERALIZATION, HOUSEHOLD PER CAPITA INCOME, RATE QUOTAS, ECONOMIC GROWTH, EXCHANGE RATES, FARM, AVERAGE HOUSEHOLD INCOME, FARM LABOR, DOMESTIC MARKET, EXTREME POVERTY LINE, AGRICULTURAL PRODUCTION, HOUSEHOLD WELFARE, CONSUMPTION PER CAPITA, RESOURCE ALLOCATION, MEASUREMENT ERRORS, FOOD PRICES, DISTRIBUTIONAL EFFECT, AGRICULTURAL WORKER, PRODUCTION COSTS, AGRICULTURAL MARKETS, GINI COEFFICIENT, AGRICULTURAL TRADE, CONSUMPTION INCREASES, AGRICULTURAL PRODUCERS, TRADE POLICY, WORLD TRADE ORGANIZATION, AVERAGE INCOMES, PRIMARY EDUCATION, INCOME DISPARITIES, NEGATIVE SHOCK, AGRICULTURAL PRICE, REGIONAL DIFFERENCES, AGRICULTURAL LIBERALIZATION, AGRICULTURAL POPULATION, DEVELOPING WORLD, INTERNATIONAL MARKETS, REGRESSION ANALYSIS, WAGES, PRODUCER INCENTIVES, NATIONAL INCOME, LABOR MARKET, INCOME REDISTRIBUTION, REGIONAL PATTERN, ECONOMIC EXPANSION, RELATIVE PRICES, LOW INCOME, TRADE POLICIES, VOLUME, WELFARE INDICATOR, AGRICULTURAL POLICY, HOUSEHOLD SURVEYS, CONSUMPTION EXPENDITURE, AGRICULTURE, DEVELOPED COUNTRIES, ECONOMIC THEORY, AGRICULTURAL INCENTIVES, AGRICULTURAL TRADE LIBERALIZATION, MEAN INCOMES, EMPIRICAL ANALYSIS, INCOME DISTRIBUTION, FOOD CONSUMPTION, LOCAL FARMERS, AVERAGE INCOME, DISTRIBUTIONAL CHANGES, FARM HOUSEHOLDS, PROPORTIONAL IMPACT, REGIONAL PATTERNS, INCOME SOURCE, TRADE DISPUTES, TRANSITION ECONOMIES, AGRICULTURAL INCOMES, AGRICULTURAL SECTOR, INCIDENCE OF POVERTY, LDCS, ECONOMIC POLICY, HOUSEHOLD INCOME, ABSOLUTE POVERTY, POLICY RESEARCH, POVERTY INCIDENCE, GROWTH RATE, PER CAPITA CONSUMPTION, AGRICULTURAL WORKERS, CONSUMER PREFERENCES, EMPIRICAL RESULTS, FOOD MARKETS, DEVELOPING REGIONS, POOR HOUSEHOLDS, AGRICULTURAL PRODUCTS, FOOD PRODUCTS, AGRICULTURAL POPULATIONS, POST-REFORM, FARM COMMODITIES, POWER PARITY, INCOME GAINS, CAPITAL ACCUMULATION, REDISTRIBUTIVE EFFECTS, COUNTRY-SPECIFIC CHARACTERISTICS, POVERTY CHANGES
Abstract

This paper assesses the potential impacts of the removal of agricultural and other trade distortions using a newly developed dataset and methodological approach for evaluating the global poverty and inequality effects of policy reforms. It finds that liberalization of agriculture will increase global extreme poverty (US$1 a day) slightly and by almost 1 percent if other goods trade is also liberalized; but the number of people living on less than $2 a day will fall by almost 1 percent. Beneath these small aggregate changes, most countries witness a substantial reduction in poverty while South Asia where half of the world's poor reside will experience an increase in extreme (but not moderate) poverty incidence due to high rates of protection afforded to its unskilled labor-intensive agricultural sectors. The distributional changes also are projected to be mild, but again exhibit a strong regional pattern: inequality falls in Latin America, which is characterized by high initial inequality, and rises in South Asia, has relatively low income inequality.

Published
2009

4. Agricultural Protection and Poverty in Indonesia : A General Equilibrium Analysis

Author

Warr, Peter

Subjects
PRICE LEVELS, TRADE LIBERALIZATION, INVENTORY, VALUE ADDED, ECONOMIC GROWTH, WELFARE MEASURE, DISTRIBUTIONAL EFFECTS, HOUSEHOLD INCOMES, RURAL POVERTY INCIDENCE, TARIFF BARRIERS, ELASTICITY OF SUBSTITUTION, MILK, FOOD POLICY, AGRICULTURAL LAND, ELASTICITY OF SUPPLY, RURAL HOUSEHOLDS, CONSUMER PRICES, POOR, CONSUMER DEMAND, UNEMPLOYMENT, BENEFICIARIES, INCOME, INSTRUMENT, AGRICULTURAL SECTORS, FINANCIAL CRISIS, PERSONAL INCOME, FOOD PRICES, HOUSEHOLD CONSUMPTION, ABSOLUTE TERMS, CONSUMER PRICE INDEX, CHANGES IN POVERTY, UTILITY MAXIMIZATION, AGRICULTURAL REGIONS, GINI COEFFICIENT, CONSUMPTION EXPENDITURES PER CAPITA, TRADE POLICY, FARMERS, GOVERNMENT BUDGET, CONSTANT RETURNS TO SCALE, POVERTY REDUCING, INVENTORIES, AGRICULTURAL LIBERALIZATION, GENERAL EQUILIBRIUM ANALYSIS, RURAL HOUSEHOLD, VARIABLE COSTS, TOTAL COSTS, WAGES, GLOBAL ECONOMY, RURAL AREAS, RURAL POVERTY, PURCHASING POWER, RURAL POOR, NATIONAL POVERTY LINE, DEFLATORS, PROFIT MAXIMIZATION, CONSUMER PRICE INDICES, VEGETABLES, LABOR MARKET, AGRICULTURAL COMMODITIES, INCOME INEQUALITY, ELASTICITY, TOTAL OUTPUT, POVERTY REDUCTION, EQUILIBRIUM, SHEEP, PRICE CHANGES, TRADE POLICIES, EXCISE TAXES, INEQUALITY, VEGETABLE OILS, FIXED CAPITAL, CONSUMPTION EXPENDITURES, CONSUMPTION EXPENDITURE, TAX RATE, AGRICULTURE, CONSUMERS, CORPORATE INCOME TAXES, WELFARE IMPLICATIONS, FOREIGN EXCHANGE, TRADE BALANCE, PRODUCTION FUNCTIONS, STATIC ANALYSIS, ACCOUNTING, INCOME DISTRIBUTION, TAXATION, INCOME TAX, NATIONAL POVERTY, EXPORTS, GLOBAL TRADE, MEAT, ECONOMIC SHOCKS, GDP DEFLATOR, FARMER, DIMINISHING RETURNS TO SCALE, FACTOR DEMAND, NATIONAL POVERTY LINES, EXCHANGE RATE, POOR PEOPLE, AGRICULTURAL PRICES, CURRENCY, GOVERNMENT EXPENDITURE, FARM PRODUCTS, AGRICULTURAL SECTOR, INTERNATIONAL MARKET, HOUSEHOLD INCOME, GOVERNMENT REVENUE, FOOD COMMODITIES, GOVERNMENT SPENDING, POVERTY INCIDENCE, COMPETITIVE PROFIT, PRODUCTION TECHNOLOGY, CURRENT ACCOUNT SURPLUS, DEVELOPING COUNTRIES, REAL GDP, AGRICULTURAL WORKERS, RATES OF RETURN, FARMING HOUSEHOLDS, POVERTY LINES, INCOME GROUPS, POOR HOUSEHOLDS, GOVERNMENT BUDGET DEFICIT, AGRICULTURAL PRODUCTS, FOOD PRODUCTS, POVERTY ALLEVIATION, AGRICULTURAL ACTIVITIES, RURAL, SMALL FARMERS, POVERTY LINE, PRODUCTION FUNCTION, SAVINGS, EXOGENOUS VARIABLES, DOMESTIC PRICES, CONSUMER GOODS, TRUST FUNDS, CURRENT ACCOUNT DEFICIT, ECONOMIC RESEARCH, DIMINISHING RETURNS, TAX SYSTEM
Abstract

A general equilibrium modeling approach is used to estimate the effects within Indonesia of unilateral and global trade liberalization, including effects on poverty incidence. It is concluded that global reform of trade policy in all commodities is a significant potential source of poverty reduction for Indonesia. The poor rural and urban have a strong interest in global trade policy reform. If Indonesia were to liberalize unilaterally, poverty incidence also will decline but the effect is small. If liberalization is confined to agricultural products, the effects are similar but the declines in poverty incidence within Indonesia are much smaller.

Published
2009

5. Poverty Implications of Agricultural and Non-Agricultural Price Distortions in Pakistan

Author

Cororaton, Caesar B. and Orden, David

Subjects
BORDER PRICE, FOREIGN TRADE, PRICE LEVELS, TRADE LIBERALIZATION, REAL INCOME, TAX, AGRICULTURAL COMMODITY, GLOBAL POVERTY, VALUE ADDED, DIVIDEND INCOME, RURAL DEVELOPMENT, WORLD TRADE, HOUSEHOLD INCOMES, COMMODITIES, RURAL POVERTY INCIDENCE, ELASTICITY OF SUBSTITUTION, DOMESTIC PRICE, COMMODITY, DEMAND FUNCTION, INFLATION, FOOD POLICY, RURAL GROWTH, RURAL HOUSEHOLDS, CONSUMER PRICES, DOMESTIC MARKET, GOVERNMENT INTERVENTION, BUDGET IMPLICATION, POOR, SUPPLY FUNCTION, health care economics and organizations, AGRICULTURAL PRODUCTION, FIXED EXCHANGE RATE, HOUSEHOLD WELFARE, INCOME, TRADE SECTORS, LANDHOLDINGS, TRADE TAX, DISPOSABLE INCOME, SALE, DECLINING WAGES, COMPETITIVENESS, FISCAL BURDEN, POVERTY RATES, RETURNS, HOUSEHOLD CONSUMPTION, CONSUMER PRICE INDEX, FARM ACTIVITIES, CONSUMPTION INCREASES, FARM PRODUCTIVITY, GOVERNMENT FUNDS, LANDOWNERS, FARMERS, FINANCING REQUIREMENT, GOVERNMENT BUDGET, REAL EXCHANGE RATE, SKILLED WORKERS, PRICE INCREASES, POOR HOUSEHOLD, POVERTY IMPACT, EXPORT MARKET, INCOMES, DEVELOPMENT ECONOMICS, AGRICULTURAL PRICE, INCOME EFFECTS, TAX STRUCTURE, AGRICULTURAL LIBERALIZATION, LAND HOLDINGS, TAX POLICY, WAGES, DEMAND CURVE, RURAL AREAS, RURAL POVERTY, SUPPLY ELASTICITY, RURAL POOR, DOMESTIC MARKETS, NATIONAL POVERTY LINE, NATIONAL INCOME, LABOR MARKET, WORLD MARKET, INCOME REDISTRIBUTION, AGRICULTURAL COMMODITIES, POVERTY SEVERITY, INCOME INEQUALITY, ELASTICITY, INDUSTRIALIZATION, INCOME TAXES, CONSUMER PRICE, POVERTY REDUCTION, POVERTY INDEX, PRICING POLICIES, TRADE SECTOR, DIVIDEND, PRICE CHANGES, TRADE POLICIES, COMMODITY PRICE, SUSTAINABLE DEVELOPMENT, MANUFACTURING INDUSTRIES, INEQUALITY, MARKETING, FACTOR PRICES, TAX RATE, AGRICULTURE, DIVIDENDS, POVERTY GAP, PRICE CHANGE, CONSUMERS, MARKET PRICES, DEMAND ELASTICITY, WTO, DOMESTIC INFLATION, RATE OF RETURN TO CAPITAL, FOREIGN DIRECT INVESTMENTS, WAGE RATES, FOREIGN EXCHANGE, IRRIGATION, SUBSTITUTES, POLITICAL ECONOMY, ACCOUNTING, POVERTY MEASURES, TAXATION, DROUGHT, INCOME TAX, NATIONAL POVERTY, EXPORTS, GLOBAL TRADE, POVERTY INDICES, REMITTANCES, MONOPOLY, FARM HOUSEHOLDS, DYNAMIC ANALYSIS, WORKERS ­ EXPERIENCE, EXCHANGE RATE, RATE OF RETURN, AGRICULTURAL PRICES, ECONOMIC MODELS, PRODUCTION STRUCTURE, RURAL AREA, FARM PRODUCTS, AGRICULTURAL SECTOR, INCIDENCE OF POVERTY, HOUSEHOLD INCOME, GOVERNMENT REVENUE, GROSS VALUE, COMMERCE, AGRICULTURAL OUTPUT, TARIFF REVENUE, POVERTY INCIDENCE, COMMODITY PRICES, NOMINAL INCOME, DEVELOPING COUNTRIES, ECONOMIC STRUCTURE, REAL GDP, AGRICULTURAL WORKERS, RATES OF RETURN, POVERTY LINES, GOVERNMENT INVOLVEMENT, EQUILIBRIUM PRICES, SALES, EXPORT SECTORS, SUPPLY CURVE, POOR HOUSEHOLDS, SMALL FARMS, AGRICULTURAL PRODUCTS, LIBERALIZATIONS, RURAL, PRICE DISTORTIONS, HOUSEHOLD SAVINGS, TRADE TAXES, CAPITAL ACCUMULATION, POVERTY INDICATORS, PRODUCTION FUNCTION, SAVINGS, DOMESTIC PRICES, TRUST FUNDS, ESTIMATES OF POVERTY, LOCAL CURRENCY, FACTORS OF PRODUCTION, EXPENDITURE
Abstract

Using recent estimates of industry assistance rates, the effects of trade liberalization in the rest of the world and in Pakistan alone are analyzed using a global and a Pakistan computable general equilibrium (CGE) model under two tax replacement schemes: a direct income tax and an indirect tax replacement. The results indicate that the distributional and poverty effects in Pakistan of a unilateral liberalization of all traded goods are significantly greater than the effects of trade liberalization in the rest of the world. There is relatively higher increase in real income and larger decline in poverty incidence in poor households both in rural and urban areas. The effects of agricultural trade liberalization alone in both the rest of the world and in Pakistan are considerably smaller than those from trade liberalization involving all goods. In both the agricultural and all-goods trade liberalization scenarios involving direct income tax replacement, real household income is raised and the poverty incidence is lowered at varied rates across all household groups except for the urban non-poor. When an indirect tax replacement is used, where the burden of replacing tariff revenue is shared by all household groups depending on their consumption structure, there is reduction in household income for most of the groups and less reduction of poverty.

Published
2009

6. Economic and Poverty Impacts of Agricultural, Trade, and Factor Market Reforms in China

Author

Zhai, Fan and Hertel, Thomas

Subjects
TRADE LIBERALIZATION, LAND REFORMS, REAL INCOME, FARM EMPLOYMENT, TAX, FARM SECTOR, GENERAL EQUILIBRIUM, GLOBAL POVERTY, MARKET DISTORTION, DEVELOPING COUNTRY, ECONOMIC GROWTH, RURAL SECTOR, MARKET REFORM, LABOR MIGRATION, ELASTICITY OF SUBSTITUTION, MOBILITY OF LABOR, TRANSACTION COSTS, RURAL LABOR, AGRICULTURAL LAND, DRIVERS, RURAL HOUSEHOLDS, CONSUMER PRICES, EXPORT MARKETS, OPEN MARKET, STOCKS, SUBSTITUTE, POOR, AGRICULTURAL PRODUCTION, RURAL ECONOMY, UNEMPLOYMENT, HOUSEHOLD WELFARE, INCOME, PRODUCTIVITY, PERFECT COMPETITION, DISPOSABLE INCOME, AGRICULTURAL WAGES, FOOD PRICES, RURAL POVERTY REDUCTION, RETURNS, REGISTRATION SYSTEM, FARM ACTIVITIES, GENERAL EQUILIBRIUM MODELS, PER CAPITA INCOME, FARM WORK, MARKET REFORMS, GINI COEFFICIENT, OPPORTUNITY COST, TRADE POLICY, ECONOMIC EFFECT, FARMERS, CONSTANT RETURNS TO SCALE, MARGINAL COST, REAL EXCHANGE RATE, LABOR SUPPLY, PRICE INCREASES, MERCHANDISE, POVERTY IMPACT, DEVELOPMENT ECONOMICS, AGRICULTURAL PRICE, LAND OWNERSHIP, AGRICULTURAL LIBERALIZATION, REAL WAGES, RURAL HOUSEHOLD, EXPORTERS, MIGRANT LABOR, RURAL INCOME, RURAL AREAS, RURAL POVERTY, POVERTY REDUCTION STRATEGIES, SUPPLY ELASTICITY, TRADE BARRIERS, PROPERTY RIGHTS, RURAL POOR, FOOD IMPORTS, RURAL MIGRANTS, EXPORTER, INCOME INEQUALITY, RURAL WORKERS, ELASTICITY, POVERTY REDUCTION, INCOME LEVELS, LAND REFORM, INCOME DIFFERENTIAL, POVERTY INCREASE, MARGINAL VALUE, LABOR MOBILITY, TRADE POLICIES, AGRICULTURAL POLICY, INEQUALITY, MULTILATERAL TRADE, TRADE REFORMS, RURAL INCOMES, RURAL LABOR MARKET, ECONOMIC DEVELOPMENT, RETURN, WEALTH, FACTOR PRICES, TAX RATE, AGRICULTURE, RENTS, URBAN EMPLOYMENT, RURAL POPULATION, DEMAND CURVES, HOUSEHOLD SURVEY, RURAL INEQUALITY, WTO, COMMUNAL LAND, GDP, LABOR MOVEMENT, WAGE RATES, MACROECONOMIC EFFECTS, BASE YEAR, PORTFOLIO, FARM WORKERS, INCOME DIFFERENTIALS, LABOR ALLOCATION, ACCOUNTING, INCOME DISTRIBUTION, OUTPUT LOSSES, FACTOR MARKETS, INCOME TAX, NATIONAL POVERTY, EXPORTS, GLOBAL TRADE, GDP DEFLATOR, FOOD CONSUMPTION, UNSKILLED LABOR, OUTPUTS, BENCHMARK, RURAL ACTIVITIES, POVERTY ESTIMATES, FARM HOUSEHOLDS, RURAL WAGES, EQUIPMENT, HOUSING SUBSIDIES, AGRICULTURAL PRICES, TRANSACTIONS COSTS, NUTRITION, SPREAD, AGRICULTURAL SECTOR, BENCHMARK DATA, INCOME LEVEL, HOUSEHOLD INCOME, ABSOLUTE POVERTY, COMMERCE, INCOME GAP, AGRICULTURAL OUTPUT, MARKET DISTORTIONS, TARIFF REVENUE, MARKETIZATION, POVERTY INCIDENCE, DEVELOPING COUNTRIES, REAL GDP, UNSKILLED WORKERS, MERCHANDISE TRADE, LABOR MARKETS, AGRICULTURAL EMPLOYMENT, DEVELOPMENT BANK, CAPITAL STOCKS, AGRICULTURAL PRODUCTS, FOOD PRODUCTS, ECONOMIC SYSTEMS, RURAL, PRICE DISTORTIONS, INCOME GROWTH, POVERTY LINE, LABOR FORCE, SAVINGS, RURAL POLICY, INDICATORS OF POVERTY, POVERTY HEADCOUNT RATE, TRUST FUNDS, ECONOMIC RESEARCH, ADVERSE IMPACTS, FOREIGN CURRENCY, PRICE VARIATION, EXPENDITURE, TRANSACTION
Abstract

Capitalizing on the most recent estimates of agricultural price distortions in China and in other countries, this paper assesses the economic and poverty impact of global and domestic trade reform in China. It also examines the interplay between the trade reforms and factor market reforms aimed at improving the allocation of labor within the Chinese economy. The results suggest that trade reforms in the rest of the world, land reform and hukou reform all serve to reduce poverty, while unilateral trade reforms result in a small poverty increase. Agricultural distortions are important factors in determining the distributional and poverty effects of trade reform packages, although their impacts on aggregate trade and welfare appear to be small. A comprehensive reform package which bundles the reforms in commodity and factor markets together may benefit all broad household groups in China.

Published
2009

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