Groundnut Policies, Global Trade Dynamics, and the Impact of Trade Liberalization
Groundnut products are of central economic importance to millions of smallholders in Africa, India, and Southern China. The products generate 60 percent of rural cash income and account for about 70 percent of the rural labor force in Senegal and T...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, D.C.
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2004/03/3030843/groundnut-policies-global-trade-dynamics-impact-trade-liberalization http://hdl.handle.net/10986/14213 |
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okr-10986-142132021-04-23T14:03:20Z Groundnut Policies, Global Trade Dynamics, and the Impact of Trade Liberalization Diop, Ndiame Beghin, John Sewadeh, Mirvat AGRICULTURAL INPUTS AGRICULTURE ANIMAL FEED BUTTER CANCER COMPETITIVENESS CONSUMER PRICES CONSUMERS COOKING CROP CROP QUALITY CULTIVATION DEVELOPED COUNTRIES EQUILIBRIUM EQUIVALENT VARIATION EXCESS SUPPLY EXPORT MARKETS EXPORTS FAO FARM FARM MANAGEMENT FARMERS FARMING FATS FERTILIZER FERTILIZERS FIXED COSTS FLOOR PRICE FREE TRADE GDP GLUTEN GROUNDNUT GROUNDNUT OIL GROUNDNUT PRODUCTION GROUNDNUTS HARVESTING IMPORTS INCOME INTERNATIONAL MARKETS INTERNATIONAL TRADE LABOR FORCE MAIZE MARKET DEMAND MARKET PRICES MARKET SHARE MEAL MERCHANDISE MERCHANDISE EXPORTS MULTILATERAL TRADE NET EXPORTS OIL OIL OIL PRICES OILSEEDS PALM PALM OIL PEANUT PEANUTS POOR FARMERS PRICE FLUCTUATIONS PRICE MECHANISM PRICE PREMIUM PRICE SUPPORT PRODUCER PRICES PRODUCERS PRODUCTION COSTS QUOTAS RAPESEED RAPESEED OIL SEED SEED VARIETIES SOYBEANS STOCKS SUBSTITUTES SUBSTITUTION SUNFLOWER SUNFLOWER OIL SUPPLIERS SURPLUS TAXATION TERMS OF TRADE TOTAL COSTS TRADE BALANCE TRADE LIBERALIZATION TRADE POLICIES VARIABLE COSTS VEGETABLE OILS VOLATILITY WORLD MARKETS WTO YIELDS GROUNDNUTS POLICY FRAMEWORK INTERNATIONAL TRADE TRADE LIBERALIZATION ECONOMIC IMPACT CASH FLOW FREE TRADE & PROTECTION RURAL ECONOMIC DEVELOPMENT MARGINAL COSTS TRADE TAXES DEVELOPING COUNTRIES IMPORT POLICY EXPORT DEVELOPMENT Groundnut products are of central economic importance to millions of smallholders in Africa, India, and Southern China. The products generate 60 percent of rural cash income and account for about 70 percent of the rural labor force in Senegal and The Gambia. Groundnut trade is heavily distorted, and this has affected the competitive position of various players in world markets. Using a partial-equilibrium, multi-market, international model, the authors analyze the trade and welfare effects of several groundnut trade liberalization scenarios compared with the recent historical baseline. They evaluate net welfare as the sum of consumers' equivalent variation, quasi-profits in farming, quasi-profits in crushing, and taxpayers' revenues and outlays implied by distortions. The authors find that trade liberalization in groundnut markets has a strong South-South dimension with policies in India, and to a lesser extent China, heavily depressing the world prices of groundnut products at the expense of smaller developing countries mainly located in Africa. Under free trade, African exporters would gain because they are net sellers of groundnut products. In India, consumers would be better off with lower consumer prices resulting from the removal of prohibitive tariffs and large imports of groundnut products. The cost of adjustment would fall on Indian farmers and crushers. In China, crush margins would improve because of the large terms of trade effects in the groundnut oil market relative to the seed market. China's groundnut product exports would expand dramatically. Net buyers of groundnut products in OECD countries would be worse off. The authors draw implications for the Doha negotiations. 2013-06-26T17:37:02Z 2013-06-26T17:37:02Z 2004-03 http://documents.worldbank.org/curated/en/2004/03/3030843/groundnut-policies-global-trade-dynamics-impact-trade-liberalization http://hdl.handle.net/10986/14213 English en_US Policy Research Working Paper;3226 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, D.C. Publications & Research :: Policy Research Working Paper Publications & Research Africa East Asia and Pacific South Asia |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
AGRICULTURAL INPUTS AGRICULTURE ANIMAL FEED BUTTER CANCER COMPETITIVENESS CONSUMER PRICES CONSUMERS COOKING CROP CROP QUALITY CULTIVATION DEVELOPED COUNTRIES EQUILIBRIUM EQUIVALENT VARIATION EXCESS SUPPLY EXPORT MARKETS EXPORTS FAO FARM FARM MANAGEMENT FARMERS FARMING FATS FERTILIZER FERTILIZERS FIXED COSTS FLOOR PRICE FREE TRADE GDP GLUTEN GROUNDNUT GROUNDNUT OIL GROUNDNUT PRODUCTION GROUNDNUTS HARVESTING IMPORTS INCOME INTERNATIONAL MARKETS INTERNATIONAL TRADE LABOR FORCE MAIZE MARKET DEMAND MARKET PRICES MARKET SHARE MEAL MERCHANDISE MERCHANDISE EXPORTS MULTILATERAL TRADE NET EXPORTS OIL OIL OIL PRICES OILSEEDS PALM PALM OIL PEANUT PEANUTS POOR FARMERS PRICE FLUCTUATIONS PRICE MECHANISM PRICE PREMIUM PRICE SUPPORT PRODUCER PRICES PRODUCERS PRODUCTION COSTS QUOTAS RAPESEED RAPESEED OIL SEED SEED VARIETIES SOYBEANS STOCKS SUBSTITUTES SUBSTITUTION SUNFLOWER SUNFLOWER OIL SUPPLIERS SURPLUS TAXATION TERMS OF TRADE TOTAL COSTS TRADE BALANCE TRADE LIBERALIZATION TRADE POLICIES VARIABLE COSTS VEGETABLE OILS VOLATILITY WORLD MARKETS WTO YIELDS GROUNDNUTS POLICY FRAMEWORK INTERNATIONAL TRADE TRADE LIBERALIZATION ECONOMIC IMPACT CASH FLOW FREE TRADE & PROTECTION RURAL ECONOMIC DEVELOPMENT MARGINAL COSTS TRADE TAXES DEVELOPING COUNTRIES IMPORT POLICY EXPORT DEVELOPMENT |
| spellingShingle |
AGRICULTURAL INPUTS AGRICULTURE ANIMAL FEED BUTTER CANCER COMPETITIVENESS CONSUMER PRICES CONSUMERS COOKING CROP CROP QUALITY CULTIVATION DEVELOPED COUNTRIES EQUILIBRIUM EQUIVALENT VARIATION EXCESS SUPPLY EXPORT MARKETS EXPORTS FAO FARM FARM MANAGEMENT FARMERS FARMING FATS FERTILIZER FERTILIZERS FIXED COSTS FLOOR PRICE FREE TRADE GDP GLUTEN GROUNDNUT GROUNDNUT OIL GROUNDNUT PRODUCTION GROUNDNUTS HARVESTING IMPORTS INCOME INTERNATIONAL MARKETS INTERNATIONAL TRADE LABOR FORCE MAIZE MARKET DEMAND MARKET PRICES MARKET SHARE MEAL MERCHANDISE MERCHANDISE EXPORTS MULTILATERAL TRADE NET EXPORTS OIL OIL OIL PRICES OILSEEDS PALM PALM OIL PEANUT PEANUTS POOR FARMERS PRICE FLUCTUATIONS PRICE MECHANISM PRICE PREMIUM PRICE SUPPORT PRODUCER PRICES PRODUCERS PRODUCTION COSTS QUOTAS RAPESEED RAPESEED OIL SEED SEED VARIETIES SOYBEANS STOCKS SUBSTITUTES SUBSTITUTION SUNFLOWER SUNFLOWER OIL SUPPLIERS SURPLUS TAXATION TERMS OF TRADE TOTAL COSTS TRADE BALANCE TRADE LIBERALIZATION TRADE POLICIES VARIABLE COSTS VEGETABLE OILS VOLATILITY WORLD MARKETS WTO YIELDS GROUNDNUTS POLICY FRAMEWORK INTERNATIONAL TRADE TRADE LIBERALIZATION ECONOMIC IMPACT CASH FLOW FREE TRADE & PROTECTION RURAL ECONOMIC DEVELOPMENT MARGINAL COSTS TRADE TAXES DEVELOPING COUNTRIES IMPORT POLICY EXPORT DEVELOPMENT Diop, Ndiame Beghin, John Sewadeh, Mirvat Groundnut Policies, Global Trade Dynamics, and the Impact of Trade Liberalization |
| geographic_facet |
Africa East Asia and Pacific South Asia |
| relation |
Policy Research Working Paper;3226 |
| description |
Groundnut products are of central
economic importance to millions of smallholders in Africa,
India, and Southern China. The products generate 60 percent
of rural cash income and account for about 70 percent of the
rural labor force in Senegal and The Gambia. Groundnut trade
is heavily distorted, and this has affected the competitive
position of various players in world markets. Using a
partial-equilibrium, multi-market, international model, the
authors analyze the trade and welfare effects of several
groundnut trade liberalization scenarios compared with the
recent historical baseline. They evaluate net welfare as the
sum of consumers' equivalent variation, quasi-profits
in farming, quasi-profits in crushing, and taxpayers'
revenues and outlays implied by distortions. The authors
find that trade liberalization in groundnut markets has a
strong South-South dimension with policies in India, and to
a lesser extent China, heavily depressing the world prices
of groundnut products at the expense of smaller developing
countries mainly located in Africa. Under free trade,
African exporters would gain because they are net sellers of
groundnut products. In India, consumers would be better off
with lower consumer prices resulting from the removal of
prohibitive tariffs and large imports of groundnut products.
The cost of adjustment would fall on Indian farmers and
crushers. In China, crush margins would improve because of
the large terms of trade effects in the groundnut oil market
relative to the seed market. China's groundnut product
exports would expand dramatically. Net buyers of groundnut
products in OECD countries would be worse off. The authors
draw implications for the Doha negotiations. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Diop, Ndiame Beghin, John Sewadeh, Mirvat |
| author_facet |
Diop, Ndiame Beghin, John Sewadeh, Mirvat |
| author_sort |
Diop, Ndiame |
| title |
Groundnut Policies, Global Trade Dynamics, and the Impact of Trade Liberalization |
| title_short |
Groundnut Policies, Global Trade Dynamics, and the Impact of Trade Liberalization |
| title_full |
Groundnut Policies, Global Trade Dynamics, and the Impact of Trade Liberalization |
| title_fullStr |
Groundnut Policies, Global Trade Dynamics, and the Impact of Trade Liberalization |
| title_full_unstemmed |
Groundnut Policies, Global Trade Dynamics, and the Impact of Trade Liberalization |
| title_sort |
groundnut policies, global trade dynamics, and the impact of trade liberalization |
| publisher |
World Bank, Washington, D.C. |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2004/03/3030843/groundnut-policies-global-trade-dynamics-impact-trade-liberalization http://hdl.handle.net/10986/14213 |
| _version_ |
1764430019351805952 |