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GTAP Resource #591

"Multilateral Trade Liberalization and Developing Countries: A North-South Perspective on Agriculture and Processing Sector"
by van Meijl, Hans and Frank van Tongeren

This paper assesses the impact of further trade liberalisation on prototypical groups of developing countries, with special attention to the linkages between trade and development of the agri-food sector. The findings of this paper are based on a new country classification approach which uses a combination of income- and trade criteria. We distinguish between developing countries whose producers compete with OECD producers in primary and/or processed agricultural products versus those countries that are not competing. We are also able to single out countries which are potentially able to develop their agricultural sector and those that will in all likelihood never be able to do so.

In a second step, a quantitative study is conducted of the impact of further liberalisation on developing countries. Here, we are able to pinpoint diverging (and common) interests among (groups of ) developing countries, based on our novel country classification. The quantitative assessment uses the GTAP modelling framework as a tool, with a recent version (5.2 pre-release) of the GTAP database.
Partial agricultural trade liberalisation is expected to generate positive economic effects in general. An important exception are the low-income exporters of primary agricultural commodities, which see a fall in net-exports as a result of stiffer competition their key markets.

Resource Details (Export Citation) GTAP Keywords
Category: GTAP Application
2001 Conference Paper
Status: Published
By/In: Presented at the 4th Annual Conference on Global Economic Analysis, Purdue University, USA
Date: 2001
Created: (5/16/2001)
Updated: van Meijl, H. (1/23/2002)
Visits: 2,987
- Agricultural policies

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