Cotton Trade Liberalizations and Domestic Agricultural Policy Reforms: A Partial Equilibrium Analysis

Suwen Pan, Mohamadou L. Fadiga, Samarendu Mohanty and Mark Welch

No 35469, 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida from Southern Agricultural Economics Association

Abstract: This paper analyzed the effects of trade liberalizing reforms in the world cotton market using a partial equilibrium model. The simulation results indicated that a removal of domestic subsidies and border tariffs for cotton would increase the amount of world cotton trade by an average of 4% in the next five years and world cotton prices by an average of 12% over the same time horizon. The findings indicated that under the liberalization policy, the United States would lose part of its export share to Brazil, Australia, and Africa. Furthermore, net cotton importing countries with minimum domestic and trade distortions would import less because of higher cotton prices whereas net cotton importing countries that subsidize domestic production and/or impose border tariffs (China, European Union, Pakistan, and Turkey) would significantly increase their imports.

Keywords: Agricultural; and; Food; Policy (search for similar items in EconPapers)
Pages: 27
Date: 2006
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/35469/files/sp06pa01.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:saeaso:35469

DOI: 10.22004/ag.econ.35469

Access Statistics for this paper

More papers in 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida from Southern Agricultural Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().