Agricultural Distortions in Sub-Saharan Africa: Trade and Welfare Indicators, 1961 to 2004

41 Pages Posted: 29 Mar 2010

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

Johanna L. Croser

University of Adelaide

Multiple version iconThere are 2 versions of this paper

Date Written: March 2010

Abstract

For decades, agricultural price and trade policies in Sub-Saharan Africa hampered farmersÂ’ contributions to economic growth and poverty reduction. While there has been much policy reform over the past two decades, the injections of agricultural development funding, together with on-going regional and global trade negotiations, have brought distortionary policies under the spotlight once again. A key question asked of those policies is: how much are they still reducing national economic welfare and trade? Economy-wide models are able to address that question, but they are not available for many poor countries. Even where they are, typically they apply to just one particular previous year and so are unable to provide trends in effects over time. This paper provides a partial-equilibrium alternative to economy-wide modelling, by drawing on a modification of so-called trade restrictiveness indexes to provide theoretically precise indicators of the trade and welfare effects of agricultural policy distortions to producer and consumer prices over the past half-century. We generate time series of country level indices, as well as Africa-wide aggregates. We also provide annual commodity market indices for the region, and we provide a sense of the relative importance of the key policy instruments used.

Keywords: agricultural price and trade policies, distorted incentives, trade restrictiveness index

JEL Classification: F13, F14, F15, N57, Q17, Q18

Suggested Citation

Anderson, Kym and Croser, Johanna L., Agricultural Distortions in Sub-Saharan Africa: Trade and Welfare Indicators, 1961 to 2004 (March 2010). CEPR Discussion Paper No. DP7747, Available at SSRN: https://ssrn.com/abstract=1578077

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

Johanna L. Croser

University of Adelaide ( email )

No 233 North Terrace, School of Commerce
Adelaide, South Australia 5005
Australia

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