Measuring Distortions to Agricultural Incentives, Revisited

46 Pages Posted: 2 Dec 2008

See all articles by Kym Anderson

Kym Anderson

University of Adelaide - Centre for International Economic Studies (CIES); Centre for Economic Policy Research (CEPR); Australian National University

Marianne Kurzweil

African Development Bank

Will J. Martin

International Food Policy Research Institute (IFPRI)

Damiano Sandri

International Monetary Fund (IMF) - Research Department

Ernesto Valenzuela

University of Adelaide - School of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: July 2008

Abstract

Notwithstanding the tariffication component of the Uruguay Round Agreement on Agriculture, import tariffs on farm products continue to provide an incomplete indication of the extent to which agricultural producer and consumer incentives are distorted in national markets. As well, in developing countries especially, non-agricultural policies indirectly impact on agricultural and food markets. Empirical analysis aimed at monitoring distortions to agricultural incentives thus need to examine both agricultural and non-agricultural policy measures including import or export taxes, subsidies and quantitative restrictions plus domestic taxes or subsidies on farm outputs or inputs and consumer subsidies for food staples. This paper addresses the practical methodological issues that need to be faced when attempting to undertake such a measurement task in developing countries. The approach is illustrated in two ways: by presenting estimates of nominal and relative rates of assistance to farmers in China for the period 1981 to 2005; and by summarizing estimates from an economy-wide CGE model of the effects on agricultural versus non-agricultural markets of the project's measured distortions globally as of 2004.

Keywords: non-tariff barriers, agricultural and trade policies, distorted incentives, tariffs

JEL Classification: F13, F14, Q17, Q18

Suggested Citation

Anderson, Kym and Kurzweil, Marianne and Martin, William J. and Sandri, Damiano and Valenzuela, Ernesto, Measuring Distortions to Agricultural Incentives, Revisited (July 2008). CEPR Discussion Paper No. DP6924. Available at SSRN: https://ssrn.com/abstract=1307514

Kym Anderson (Contact Author)

University of Adelaide - Centre for International Economic Studies (CIES) ( email )

School of Economics
Adelaide SA 5005
Australia
+61 8 8313 4712 (Phone)
+61 8 8223 1460 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Australian National University ( email )

Arndt-Corden Dept of Economics
Coombs Building
Canberra, AK ACT 2600
Australia
+61 8 8313 4712 (Phone)

HOME PAGE: http://publicpolicy.anu.edu.au/crawford_people/content/staff/acde/kanderson.php

Marianne Kurzweil

African Development Bank ( email )

Abidjan, Ivory Coast
Tunisia

William J. Martin

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

Damiano Sandri

International Monetary Fund (IMF) - Research Department ( email )

700 19th Street NW
Washington, DC 20431
United States

Ernesto Valenzuela

University of Adelaide - School of Economics ( email )

Adelaide SA, 5005
Australia

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