1. Agricultural Price Distortions, Inequality, and Poverty : Introduction and Summary
- Author
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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