Krueger, Schiff, and Valdés Revisited: Agricultural Price and Trade Policy Reform in Developing Countries Since 1960

Posted: 17 May 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

Abstract

A study of distortions to agricultural incentives in 18 developing countries from 1960-84, by Krueger, Schiff, ad Valdés (1988; 1991), found that policies in most of those developing countries were directly or indirectly harming their farmers. Since the mid-1980s, there has been a substantial amount of policy reform and opening up of many developing countries. Indicators of that progress have been made available recently by a new study that has compiled estimates for a much larger sample of developing countries, and for as many years as possible since 1955. The new study also covers Europe's transition economies and comparable estimates for high-income countries, thereby covering more than 90% of world agricultural output and employment. This article summarizes the methodology used in the new study, compares a synopsis of the indicators from Krueger, Schiff, and Valdés and the new study for the period to 1984, summarizes the changing extent of price distortions across countries and commodities globally since then, and concludes by evaluating the degree of distortion reduction over the years since 1984 compared with how much still remains, according to the results of a global economy wide model.

Keywords: Agricultural price distortions, trade policies, developing countries

JEL Classification: F13, F59, H20, N50, O13, Q18

Suggested Citation

Anderson, Kym, Krueger, Schiff, and Valdés Revisited: Agricultural Price and Trade Policy Reform in Developing Countries Since 1960. Applied Economic Perspectives and Policy, Vol. 32, No. 2, pp. 195-231, 2010, Available at SSRN: https://ssrn.com/abstract=1607532 or http://dx.doi.org/ppq005

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

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