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
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
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Journal Article: Trade Barrier Volatility and Agricultural Price Stabilization (2012)
Working Paper: Trade Barrier Volatility and Agricultural Price Stabilization (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:adl:cieswp:2010-16
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