Food Trade Openness and Enhancement of Food Security—Partial Equilibrium Model Simulations for Selected Countries

Eihab Fathelrahman, Stephen Davies and Safdar Muhammad
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Eihab Fathelrahman: Al Magam Campus, College of Food and Agriculture (CFA), United Arab Emirates University, Al Ain 15551, United Arab Emirates
Stephen Davies: International Food Policy Research Institute, Islamabad 44000, Pakistan
Safdar Muhammad: Al Magam Campus, College of Food and Agriculture (CFA), United Arab Emirates University, Al Ain 15551, United Arab Emirates

Sustainability, 2021, vol. 13, issue 8, 1-20

Abstract: This research measured the welfare impacts of food trade liberalization in India, Egypt, Pakistan, Saudi Arabia, and the United Arab Emirates (UAE) using the partial equilibrium model—World Integrated Trade Solution (WITS). Macroeconomic settings, domestic policy objectives, and food security indicator data are used to assess the implications of the simulations on food availability and stability. Simulation results for India, Egypt, and Pakistan indicate annual welfare gains (consumer surplus) of 2571, 340, and 25 million USD, respectively, while Saudi Arabia and the UAE have gains of 14 and 17 million USD. Results show that tariff elimination would have wide-ranging welfare impacts across food commodities within these countries. Moreover, reductions for specific commodities directly relevant to food energy and protein availability would have a greater direct impact on the poor. Lowering the highest tariffs on those commodities might raise the real incomes of more than 350 million persons by 7.5% or more and could create shifts in consumption towards more diversified and nutritionally sound diets.

Keywords: agri-food trade; food security indicators; regional trade; trade creation; trade diversion; consumer welfare; tariffs reduction; trade openness; partial equilibrium; simulation (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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