Agricultural Tariffs or Subsidies : Which Are More Important for Developing Economies?

Hoekman, Bernard ; Ng, Francis ; Olarreaga, Olarreaga

Washington, DC:World Bank

关键词: AGRICULTURAL COMMODITIES;    AGRICULTURAL MARKETS;    AGRICULTURAL PRODUCTION;    AGRICULTURAL PRODUCTS;    AGRICULTURAL SUBSIDIES;   

DOI  :  10.1093/wber/lhh037
RP-ID  :  77468

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This article assesses the impact of theworld price-depressing effect of agricultural subsidies andborder protection in Organization for Economic Co-operationand Development (OECD) countries on developingeconomies' exports, imports, and welfare. Developingeconomy exporters are likely to benefit from reductions insuch subsidies and trade barriers, whereas net importers maylose as world prices rise. A simple partial equilibriummodel of global trade in commodities that benefit fromdomestic support or export subsidies is developed toestimate the relevant elasticities. Simulation resultssuggest that a 50 percent reduction in border protectionwill have a much larger positive impact on developingeconomies' exports and welfare than a 50 percentreduction in agricultural subsidies. Although there issignificant heterogeneity across developing economies, theresults suggest that efforts in the Doha round of WorldTrade Organization (WTO) negotiations should be directed atsubstantially reducing border protection.