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Who Bears the Cost of Agricultural Support in OECD Countries?
Author(s) -
Tokarick Stephen
Publication year - 2005
Publication title -
world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.594
H-Index - 68
eISSN - 1467-9701
pISSN - 0378-5920
DOI - 10.1111/j.1467-9701.2005.00692.x
Subject(s) - subsidy , agriculture , economics , partial equilibrium , developing country , food prices , international economics , agricultural economics , general equilibrium theory , natural resource economics , food security , macroeconomics , economic growth , geography , market economy , archaeology
This paper provides quantitative estimates of the impact of removing agricultural support in both OECD and developing countries in partial and general equilibrium frameworks. The results show that agricultural support in OECD countries is highly distortionary, and tariffs have a larger distortionary impact than subsidies. Removal of agricultural support would likely raise the international prices of food, resulting in an increase in the cost of food for many net‐food importing countries, although the size of the increase is generally small. The results also show that most of the benefits from removing agricultural support accrue to the countries that liberalise.