A Quantitative Analysis of Trade Policy Responses to High Agricultural Commodity Prices

Tun-hsiang Yu, Simla Tokgoz, Eric J. Wailes and Eddie C. Chavez

No 51805, 2009 Conference, August 16-22, 2009, Beijing, China from International Association of Agricultural Economists

Abstract: In order to mitigate the food commodity price pressure on domestic markets in the 2007/08 marketing year, major exporting and importing countries, most of them developing economies, have adopted some trade policy changes such as imposing export bans (or raising restrictions) and reducing import tariffs. This paper evaluates the impact of those policies on the world price and trade of major agricultural commodities. We quantify the changes in prices, trade, production, and consumption by using a set of multi-country, multi-commodity, and partial-equilibrium models. Results show that most commodity prices increase when these trade policies are exercised. Rice price is distorted the most, followed by wheat and barley. The impact on the aggregate trade varies by commodities. Our analysis illustrates that the inefficient trade policies actually worsen the price inflation rather than solving the issue.

Keywords: International; Relations/Trade (search for similar items in EconPapers)
Pages: 24
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/51805/files/IAAE_734.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae09:51805

DOI: 10.22004/ag.econ.51805

Access Statistics for this paper

More papers in 2009 Conference, August 16-22, 2009, Beijing, China from International Association of Agricultural Economists Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().