Trade Barrier Volatility and Agricultural Price Stabilization

Kym Anderson and Signe Nelgen ()
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Signe Nelgen: School of Economics, University of Adelaide, Australia

No 2010-16, Centre for International Economic Studies Working Papers from University of Adelaide, Centre for International Economic Studies

Abstract: National barriers to trade are often varied to insulate domestic markets from international price variability. This paper explores the extent of that behavior by governments using estimates of agricultural price distortions in 75 countries. Newly estimated price transmission elasticities are quite low, albeit slightly higher since than before 1985. In the case of extreme upward price spikes, trade policy responses by food importers are as substantial as those of exporting countries. The domestic price-stabilizing effect of intervention by each group is thereby weakened by the other groupÂ’s response, suggesting more-effective domestic policy options need to be considered instead of varying trade barriers.

Keywords: Commodity price stabilization; Price transmission; Domestic market insulation; Distorted incentives; Agricultural trade policies (search for similar items in EconPapers)
JEL-codes: F14 Q17 Q18 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2010-11
New Economics Papers: this item is included in nep-agr
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Related works:
Journal Article: Trade Barrier Volatility and Agricultural Price Stabilization (2012)
Working Paper: Trade Barrier Volatility and Agricultural Price Stabilization (2010)
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