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Agricultural Trade Liberalization and Low Income Countries: A General Equilibrium-Multimarket Approach

Elisabeth Sadoulet () and Alain de Janvry ()

American Journal of Agricultural Economics, 1992, vol. 74, issue 2, 268-280

Abstract: Integrated multimarket-general-equilibrium models are constructed to analyze the impact on poor cereal importers of rising world prices following OECD trade liberalization. Archetypes contrast African countries in which cereal imports are not competitive with domestic production (Africa I) to African and Asian countries where they are competitive. Results show rising food import bills and exchange rate depreciation in Africa I and the opposite in the other two regions. Policy implications include promoting agricultural exports from Africa I and promoting food crops for import substitution in the other regions. Food aid needed to shelter the poor during the transition period is calculated.

Date: 1992
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