Tariff protection elimination and Common Agricultural Policy reform: implications of changes in methods of import demand modelling

Alexandre Gohin (), Herve Guyomard () and Chantal Le Mouël
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Alexandre Gohin: Économie et Sociologie Rurales - INRA - Institut National de la Recherche Agronomique
Herve Guyomard: Économie et Sociologie Rurales - INRA - Institut National de la Recherche Agronomique

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Abstract: The study proposes a way for accommodating the traditional Armington assumption to capture the possibility for a country to import imperfect substitutes as well as perfect substitutes for domestically produced goods. When this possibility is incorporated into a modelling framework, then a Common Agricultural Policy elimination scenario, including the setting to zero of import tariffs, would have starker implications than many studies suggest. To illustrate this point, a Computable General Equilibrium (CGE) model of the French economy is used, highlighting agricultural and food sectors. The study analyses the consequences for the French economy of a complete liberalization scenario in the European sector of cereals.

Keywords: POLITIQUE AGRICOLE COMMUNE; market; cereal; trade liberalization; france; europe; marché; céréale; libéralisation des échanges; modèle d'équilibre général (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (2)

Published in Applied Economics, 2006, 38 (13), pp.1527-1539. ⟨10.1080/00036840500414609⟩

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Working Paper: Tariff protection elimination and Common Agricultural Policy reform: implications of changes in methods of import demand modelling (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01931629

DOI: 10.1080/00036840500414609

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