Do Trade Agreements Reduce the Volatility of Agricultural Distortions?

Cadot, Olivier ; Olarreaga, Marcelo ; Tschopp, Jeanne

World Bank, Washington, DC

关键词: ABSOLUTE VALUE;    ACCORDS;    AGRICULTURAL AGREEMENT;    AGRICULTURAL INCENTIVES;    AGRICULTURAL PRODUCTION;   

RP-ID  :  55961

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

The objective of this paper is toevaluate the extent to which trade agreements affectagricultural trade policy volatility. Using a new paneldatabase compiled as part of the World Bank'sagricultural distortions research project, the authorestimate the effect of regionalismon the volatility ofprice distortions measured by the absolute value of theirfirst differences, averaged, for each country and year, overall agricultural goods. Using an instrumental-variableapproach to correct for the endogeneity of regional tradeagreements, (RTAs), the author fined that participation inRTAs has a significantly negative effect on agriculturaltrade-policy volatility. The author find that the WorldTrade Organization (WTO) agricultural agreement alsocontributed to reducing agricultural trade-policyvolatility, in spite of the weak disciplines involved, butthe effect is only weakly identified. The results are robustto a variety of robustness checks and hold, in particular,for the Latin American sub-sample.