Grain Price Spikes and Beggar-thy-neighbor Policy Responses: A Global Economywide Analysis
Kym Anderson () and
Hans Jensen ()
No 10076, CEPR Discussion Papers from C.E.P.R. Discussion Papers
When prices spike in international grain markets, national governments often reduce the extent to which that spike affects their domestic food markets. Those actions exacerbate the price spike and international welfare transfer associated with that terms of trade change. Several recent analyses have assessed the extent to which those policies contributed to the 2006-08 international price rise, but only by focusing on one commodity or using a back-of-the envelope (BOTE) method. This paper provides a more-comprehensive analysis using a global economy-wide model that is able to take account of the interactions between markets for farm products that are closely related in production and/or consumption, and able to estimate the impacts of those insulating policies on grain prices and on the grain trade and economic welfare of the world’s various countries. Our results support the conclusion from earlier studies that there is a need for stronger WTO disciplines on export restrictions.
Keywords: commodity price stabilization; distorted incentives; domestic market insulation; international price transmission (search for similar items in EconPapers)
JEL-codes: F14 Q17 Q18 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr and nep-int
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Journal Article: Grain Price Spikes and Beggar-thy-Neighbor Policy Responses: A Global Economywide Analysis (2017)
Working Paper: Grain price spikes and beggar-thy-neighbor policy responses: A global economywide analysis (2014)
Working Paper: Grain price spikes and beggar-thy-neighbor policy responses: a global economywide analysis (2014)
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