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Distortions to World Trade: Impacts on Agricultural Markets and Farm Incomes

Kym Anderson (), Will Martin () and Dominique van der Mensbrugghe ()

Review of Agricultural Economics, 2006, vol. 28, issue 2, 168-194

Abstract: The latest versions of the Global Trade Analysis Project database and the Linkage model of the global economy (projected to 2015) are used to estimate the impact of removing all merchandise trade distortions (including agricultural subsidies). Results suggest that a move to free merchandise trade would increase farm employment, the real value of agricultural output and exports, real returns to farm land and unskilled labor, and real net farm incomes in developing countries. This would occur despite the decline in international terms of trade for some developing countries that are net food importers or are enjoying preferential access to agricultural markets of high-income countries. Copyright 2006, Oxford University Press.

Date: 2006
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