Who Bears the Cost of Agricultural Support in OECD Countries?

Stephen Tokarick

The World Economy, 2005, vol. 28, issue 4, 573-593

Abstract: This paper provides quantitative estimates of the impact of removing agricultural support in both OECD and developing countries in partial and general equilibrium frameworks. The results show that agricultural support in OECD countries is highly distortionary, and tariffs have a larger distortionary impact than subsidies. Removal of agricultural support would likely raise the international prices of food, resulting in an increase in the cost of food for many net‐food importing countries, although the size of the increase is generally small. The results also show that most of the benefits from removing agricultural support accrue to the countries that liberalise.

Date: 2005
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