Welfare and Poverty Effects of Global Agricultural and Trade Policies Using the Linkage Model

This paper analyzes the economic effects of agricultural price and merchandise trade policies around the world as of 2004 on global markets, net farm incomes, and national and regional economic welfare and poverty, using the global economy wide Lin...

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Main Authors: Anderson, Kym, Valenzuela, Ernesto, van der Mensbrugghe, Dominique
Format: Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2017
Subjects:
GDP
ITC
TAX
WTO
Online Access:http://documents.worldbank.org/curated/en/788661468330888728/Welfare-and-poverty-effects-of-global-agricultural-and-trade-policies-using-the-Linkage-model
http://hdl.handle.net/10986/28155
id okr-10986-28155
recordtype oai_dc
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 ACCESSION NEGOTIATIONS
AGGREGATE IMPORTS
AGRICULTURAL ECONOMICS
AGRICULTURAL ECONOMY
AGRICULTURAL GOODS
AGRICULTURAL IMPORTS
AGRICULTURAL INCENTIVES
AGRICULTURAL LAND
AGRICULTURAL MARKETS
AGRICULTURAL POLICIES
AGRICULTURAL POLICY
AGRICULTURAL PRICE
AGRICULTURAL PRICE SUPPORTS
AGRICULTURAL PRODUCTION
AGRICULTURAL PROTECTION
AGRICULTURAL PROTECTIONISM
AGRICULTURAL SUBSIDIES
AGRICULTURAL TARIFF
AGRICULTURAL TARIFFS
AGRICULTURAL TRADE
AGRICULTURAL VALUE
AGRICULTURE
ANTI-TRADE
APPAREL
APPLIED TARIFF
BANANAS
BASE YEAR
BEET
BENCHMARK
BENCHMARK DATA
BILATERAL TARIFF
BILATERAL TARIFFS
BILATERAL TRADE
BORDER MEASURES
CAPITAL OWNERS
COMMODITIES
COMPARATIVE ADVANTAGE
COMPARATIVE ADVANTAGES
CONSTANT RETURNS TO SCALE
CONSUMER PRICE INDEX
CONSUMER PRICES
CONSUMERS
COST OF CAPITAL
COTTON
COUNTRY MARKETS
CROPS
CURRENT ACCOUNT
CURRENT ACCOUNT BALANCE
CUSTOMS
CUSTOMS REVENUE
DAIRY
DAIRY PRODUCTS
DEMAND SHOCKS
DEVELOPED COUNTRIES
DEVELOPING COUNTRIES
DEVELOPING COUNTRY
DEVELOPMENT ECONOMICS
DEVELOPMENT POLICY
DISTRIBUTION OF INCOME
DOMESTIC CONSUMPTION
DOMESTIC MARKETS
DOMESTIC PRODUCTION
DOMESTIC SALES
ECONOMIC IMPLICATIONS
ECONOMIC POLICY
ECONOMIC SECTORS
ECONOMIC SIZE
ECONOMIC WELFARE
ELASTICITY
EXCHANGE RATE
EXCHANGE RATE REGIMES
EXOGENOUS SHOCKS
EXPORT
EXPORT DEMAND
EXPORT PRICE
EXPORT SHARE
EXPORT SUBSIDIES
EXPORT SUBSIDY
EXPORT TAXES
EXPORTERS
EXPORTS
EXTERNALITIES
EXTREME POVERTY
FACTORS OF PRODUCTION
FARM
FARM INCOME
FARM INCOMES
FARM PRODUCTION
FARM PRODUCTS
FARM SECTOR
FARM VALUE
FARMERS
FARMS
FATS
FINANCIAL FLOWS
FOOD PRICE
FOOD PRODUCTION
FOOD PRODUCTS
FOREIGN INVESTMENT
FREE ACCESS
FREE MARKETS
FREE TRADE
FULL LIBERALIZATION
GDP
GENERAL EQUILIBRIUM
GENERAL EQUILIBRIUM MODEL
GINI COEFFICIENT
GLOBAL COMPUTABLE GENERAL EQUILIBRIUM
GLOBAL ECONOMIC PROSPECTS
GLOBAL ECONOMY
GLOBAL EXPORTS
GLOBAL MARKETS
GLOBAL OUTPUT
GLOBAL TRADE
GLOBAL TRADE ANALYSIS
GLOBALIZATION
GRAIN
HOUSEHOLDS
IMPACT OF TRADE
IMPORT BARRIERS
IMPORT INCREASES
IMPORT PROTECTION
IMPORT TARIFF
IMPORT TARIFFS
IMPORTS
INCOME
INCOME TAX
INEQUALITY
INTENSIVE FARMING
INTERNATIONAL ECONOMICS
INTERNATIONAL MARKETS
INTERNATIONAL PRICES
INTERVENTION MEASURES
ITC
LIVESTOCK
LOSS OF TARIFF REVENUE
MARGINAL COSTS
MARKET ACCESS
MARKET FAILURES
MEAT
MEAT PRODUCTS
MILK
MULTILATERAL TRADE
NATIONAL ECONOMY
NATIONAL INCOME
NEW MARKETS
NON-TARIFF BARRIERS
PERFECT COMPETITION
POLITICAL ECONOMY
POVERTY ALLEVIATION
PREFERENTIAL ACCESS
PREFERENTIAL TRADE
PREFERENTIAL TRADE AGREEMENTS
PRICE DISTORTION
PRICE DISTORTIONS
PRICE FLUCTUATIONS
PRIMARY PRODUCTS
PRODUCTION STRUCTURES
PRODUCTIVITY GROWTH
PROTECTION DATA
PROTECTIONISM
PUBLIC GOOD
RATE QUOTAS
RAW MILK
REAL EXCHANGE RATE
REAL INCOME
REDUCTION IN TARIFFS
REGIONALISM
ROUND OF MULTILATERAL TRADE NEGOTIATIONS
SAVINGS
SKILLED WORKERS
SUGAR
SUGAR CANE
TARIFF BARRIERS
TARIFF LINE
TARIFF RATE
TARIFF RATE QUOTAS
TARIFF REVENUE
TARIFF REVENUES
TARIFF STRUCTURE
TAX
TAX RATES
TAXATION
TERMS OF TRADE
TERMS OF TRADE EFFECT
TERMS OF TRADE EFFECTS
TRADABLE GOODS
TRADE AGREEMENTS
TRADE BALANCE
TRADE DISTORTIONS
TRADE FLOWS
TRADE LIBERALIZATION
TRADE NEGOTIATIONS
TRADE PATTERNS
TRADE POLICIES
TRADE POLICY
TRADE POLICY REFORM
TRADE POLICY REFORMS
TRADE PREFERENCES
TRADE REFORM
TRADE TAXES
TRANSITION ECONOMIES
TREASURY
UNEMPLOYMENT
UNILATERAL REFORMS
UNSKILLED LABOR
UNSKILLED WORKERS
URUGUAY ROUND
VALUE ADDED
VALUE OF OUTPUT
VEGETABLE OILS
VOLUME
WAGES
WELFARE GAINS
WORLD ECONOMY
WORLD TRADE
WORLD TRADE ORGANIZATION
WTO
spellingShingle ACCESSION NEGOTIATIONS
AGGREGATE IMPORTS
AGRICULTURAL ECONOMICS
AGRICULTURAL ECONOMY
AGRICULTURAL GOODS
AGRICULTURAL IMPORTS
AGRICULTURAL INCENTIVES
AGRICULTURAL LAND
AGRICULTURAL MARKETS
AGRICULTURAL POLICIES
AGRICULTURAL POLICY
AGRICULTURAL PRICE
AGRICULTURAL PRICE SUPPORTS
AGRICULTURAL PRODUCTION
AGRICULTURAL PROTECTION
AGRICULTURAL PROTECTIONISM
AGRICULTURAL SUBSIDIES
AGRICULTURAL TARIFF
AGRICULTURAL TARIFFS
AGRICULTURAL TRADE
AGRICULTURAL VALUE
AGRICULTURE
ANTI-TRADE
APPAREL
APPLIED TARIFF
BANANAS
BASE YEAR
BEET
BENCHMARK
BENCHMARK DATA
BILATERAL TARIFF
BILATERAL TARIFFS
BILATERAL TRADE
BORDER MEASURES
CAPITAL OWNERS
COMMODITIES
COMPARATIVE ADVANTAGE
COMPARATIVE ADVANTAGES
CONSTANT RETURNS TO SCALE
CONSUMER PRICE INDEX
CONSUMER PRICES
CONSUMERS
COST OF CAPITAL
COTTON
COUNTRY MARKETS
CROPS
CURRENT ACCOUNT
CURRENT ACCOUNT BALANCE
CUSTOMS
CUSTOMS REVENUE
DAIRY
DAIRY PRODUCTS
DEMAND SHOCKS
DEVELOPED COUNTRIES
DEVELOPING COUNTRIES
DEVELOPING COUNTRY
DEVELOPMENT ECONOMICS
DEVELOPMENT POLICY
DISTRIBUTION OF INCOME
DOMESTIC CONSUMPTION
DOMESTIC MARKETS
DOMESTIC PRODUCTION
DOMESTIC SALES
ECONOMIC IMPLICATIONS
ECONOMIC POLICY
ECONOMIC SECTORS
ECONOMIC SIZE
ECONOMIC WELFARE
ELASTICITY
EXCHANGE RATE
EXCHANGE RATE REGIMES
EXOGENOUS SHOCKS
EXPORT
EXPORT DEMAND
EXPORT PRICE
EXPORT SHARE
EXPORT SUBSIDIES
EXPORT SUBSIDY
EXPORT TAXES
EXPORTERS
EXPORTS
EXTERNALITIES
EXTREME POVERTY
FACTORS OF PRODUCTION
FARM
FARM INCOME
FARM INCOMES
FARM PRODUCTION
FARM PRODUCTS
FARM SECTOR
FARM VALUE
FARMERS
FARMS
FATS
FINANCIAL FLOWS
FOOD PRICE
FOOD PRODUCTION
FOOD PRODUCTS
FOREIGN INVESTMENT
FREE ACCESS
FREE MARKETS
FREE TRADE
FULL LIBERALIZATION
GDP
GENERAL EQUILIBRIUM
GENERAL EQUILIBRIUM MODEL
GINI COEFFICIENT
GLOBAL COMPUTABLE GENERAL EQUILIBRIUM
GLOBAL ECONOMIC PROSPECTS
GLOBAL ECONOMY
GLOBAL EXPORTS
GLOBAL MARKETS
GLOBAL OUTPUT
GLOBAL TRADE
GLOBAL TRADE ANALYSIS
GLOBALIZATION
GRAIN
HOUSEHOLDS
IMPACT OF TRADE
IMPORT BARRIERS
IMPORT INCREASES
IMPORT PROTECTION
IMPORT TARIFF
IMPORT TARIFFS
IMPORTS
INCOME
INCOME TAX
INEQUALITY
INTENSIVE FARMING
INTERNATIONAL ECONOMICS
INTERNATIONAL MARKETS
INTERNATIONAL PRICES
INTERVENTION MEASURES
ITC
LIVESTOCK
LOSS OF TARIFF REVENUE
MARGINAL COSTS
MARKET ACCESS
MARKET FAILURES
MEAT
MEAT PRODUCTS
MILK
MULTILATERAL TRADE
NATIONAL ECONOMY
NATIONAL INCOME
NEW MARKETS
NON-TARIFF BARRIERS
PERFECT COMPETITION
POLITICAL ECONOMY
POVERTY ALLEVIATION
PREFERENTIAL ACCESS
PREFERENTIAL TRADE
PREFERENTIAL TRADE AGREEMENTS
PRICE DISTORTION
PRICE DISTORTIONS
PRICE FLUCTUATIONS
PRIMARY PRODUCTS
PRODUCTION STRUCTURES
PRODUCTIVITY GROWTH
PROTECTION DATA
PROTECTIONISM
PUBLIC GOOD
RATE QUOTAS
RAW MILK
REAL EXCHANGE RATE
REAL INCOME
REDUCTION IN TARIFFS
REGIONALISM
ROUND OF MULTILATERAL TRADE NEGOTIATIONS
SAVINGS
SKILLED WORKERS
SUGAR
SUGAR CANE
TARIFF BARRIERS
TARIFF LINE
TARIFF RATE
TARIFF RATE QUOTAS
TARIFF REVENUE
TARIFF REVENUES
TARIFF STRUCTURE
TAX
TAX RATES
TAXATION
TERMS OF TRADE
TERMS OF TRADE EFFECT
TERMS OF TRADE EFFECTS
TRADABLE GOODS
TRADE AGREEMENTS
TRADE BALANCE
TRADE DISTORTIONS
TRADE FLOWS
TRADE LIBERALIZATION
TRADE NEGOTIATIONS
TRADE PATTERNS
TRADE POLICIES
TRADE POLICY
TRADE POLICY REFORM
TRADE POLICY REFORMS
TRADE PREFERENCES
TRADE REFORM
TRADE TAXES
TRANSITION ECONOMIES
TREASURY
UNEMPLOYMENT
UNILATERAL REFORMS
UNSKILLED LABOR
UNSKILLED WORKERS
URUGUAY ROUND
VALUE ADDED
VALUE OF OUTPUT
VEGETABLE OILS
VOLUME
WAGES
WELFARE GAINS
WORLD ECONOMY
WORLD TRADE
WORLD TRADE ORGANIZATION
WTO
Anderson, Kym
Valenzuela, Ernesto
van der Mensbrugghe, Dominique
Welfare and Poverty Effects of Global Agricultural and Trade Policies Using the Linkage Model
relation Agricultural Distortions Working Paper;95
description This paper analyzes the economic effects of agricultural price and merchandise trade policies around the world as of 2004 on global markets, net farm incomes, and national and regional economic welfare and poverty, using the global economy wide Linkage model, new estimates of agricultural price distortions for developing countries, and poverty elasticity's approach. It addresses two questions: to what extent are policies as of 2004 still reducing rewards from farming in developing countries and thereby adding to inequality across countries in farm household incomes? Are they depressing value added more in primary agriculture than in the rest of the economy of developing countries, and earnings of unskilled workers more than of owners of other factors of production, thereby potentially contributing to inequality and poverty within developing countries (given that farm incomes are well below non-farm incomes in most developing countries and that agriculture there is intensive in the use of unskilled labor)? Results are presented for the key countries and regions of the world and for the world as a whole. They reveal that, by moving to free markets, income inequality between countries will be reduced at least slightly, all but one-sixth of the gains to developing countries will come from agricultural policy reform, unskilled workers in developing countries the majority of whom work on farms will benefit most from reform, net farm incomes in developing countries will rise by 6 percent compared with 2 percent for non-agricultural value added, and the number of people surviving on less than US$1 a day will drop 3 percent globally.
format Working Paper
author Anderson, Kym
Valenzuela, Ernesto
van der Mensbrugghe, Dominique
author_facet Anderson, Kym
Valenzuela, Ernesto
van der Mensbrugghe, Dominique
author_sort Anderson, Kym
title Welfare and Poverty Effects of Global Agricultural and Trade Policies Using the Linkage Model
title_short Welfare and Poverty Effects of Global Agricultural and Trade Policies Using the Linkage Model
title_full Welfare and Poverty Effects of Global Agricultural and Trade Policies Using the Linkage Model
title_fullStr Welfare and Poverty Effects of Global Agricultural and Trade Policies Using the Linkage Model
title_full_unstemmed Welfare and Poverty Effects of Global Agricultural and Trade Policies Using the Linkage Model
title_sort welfare and poverty effects of global agricultural and trade policies using the linkage model
publisher World Bank, Washington, DC
publishDate 2017
url http://documents.worldbank.org/curated/en/788661468330888728/Welfare-and-poverty-effects-of-global-agricultural-and-trade-policies-using-the-Linkage-model
http://hdl.handle.net/10986/28155
_version_ 1764465401386762240
spelling okr-10986-281552021-04-23T14:04:45Z Welfare and Poverty Effects of Global Agricultural and Trade Policies Using the Linkage Model Anderson, Kym Valenzuela, Ernesto van der Mensbrugghe, Dominique ACCESSION NEGOTIATIONS AGGREGATE IMPORTS AGRICULTURAL ECONOMICS AGRICULTURAL ECONOMY AGRICULTURAL GOODS AGRICULTURAL IMPORTS AGRICULTURAL INCENTIVES AGRICULTURAL LAND AGRICULTURAL MARKETS AGRICULTURAL POLICIES AGRICULTURAL POLICY AGRICULTURAL PRICE AGRICULTURAL PRICE SUPPORTS AGRICULTURAL PRODUCTION AGRICULTURAL PROTECTION AGRICULTURAL PROTECTIONISM AGRICULTURAL SUBSIDIES AGRICULTURAL TARIFF AGRICULTURAL TARIFFS AGRICULTURAL TRADE AGRICULTURAL VALUE AGRICULTURE ANTI-TRADE APPAREL APPLIED TARIFF BANANAS BASE YEAR BEET BENCHMARK BENCHMARK DATA BILATERAL TARIFF BILATERAL TARIFFS BILATERAL TRADE BORDER MEASURES CAPITAL OWNERS COMMODITIES COMPARATIVE ADVANTAGE COMPARATIVE ADVANTAGES CONSTANT RETURNS TO SCALE CONSUMER PRICE INDEX CONSUMER PRICES CONSUMERS COST OF CAPITAL COTTON COUNTRY MARKETS CROPS CURRENT ACCOUNT CURRENT ACCOUNT BALANCE CUSTOMS CUSTOMS REVENUE DAIRY DAIRY PRODUCTS DEMAND SHOCKS DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISTRIBUTION OF INCOME DOMESTIC CONSUMPTION DOMESTIC MARKETS DOMESTIC PRODUCTION DOMESTIC SALES ECONOMIC IMPLICATIONS ECONOMIC POLICY ECONOMIC SECTORS ECONOMIC SIZE ECONOMIC WELFARE ELASTICITY EXCHANGE RATE EXCHANGE RATE REGIMES EXOGENOUS SHOCKS EXPORT EXPORT DEMAND EXPORT PRICE EXPORT SHARE EXPORT SUBSIDIES EXPORT SUBSIDY EXPORT TAXES EXPORTERS EXPORTS EXTERNALITIES EXTREME POVERTY FACTORS OF PRODUCTION FARM FARM INCOME FARM INCOMES FARM PRODUCTION FARM PRODUCTS FARM SECTOR FARM VALUE FARMERS FARMS FATS FINANCIAL FLOWS FOOD PRICE FOOD PRODUCTION FOOD PRODUCTS FOREIGN INVESTMENT FREE ACCESS FREE MARKETS FREE TRADE FULL LIBERALIZATION GDP GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM MODEL GINI COEFFICIENT GLOBAL COMPUTABLE GENERAL EQUILIBRIUM GLOBAL ECONOMIC PROSPECTS GLOBAL ECONOMY GLOBAL EXPORTS GLOBAL MARKETS GLOBAL OUTPUT GLOBAL TRADE GLOBAL TRADE ANALYSIS GLOBALIZATION GRAIN HOUSEHOLDS IMPACT OF TRADE IMPORT BARRIERS IMPORT INCREASES IMPORT PROTECTION IMPORT TARIFF IMPORT TARIFFS IMPORTS INCOME INCOME TAX INEQUALITY INTENSIVE FARMING INTERNATIONAL ECONOMICS INTERNATIONAL MARKETS INTERNATIONAL PRICES INTERVENTION MEASURES ITC LIVESTOCK LOSS OF TARIFF REVENUE MARGINAL COSTS MARKET ACCESS MARKET FAILURES MEAT MEAT PRODUCTS MILK MULTILATERAL TRADE NATIONAL ECONOMY NATIONAL INCOME NEW MARKETS NON-TARIFF BARRIERS PERFECT COMPETITION POLITICAL ECONOMY POVERTY ALLEVIATION PREFERENTIAL ACCESS PREFERENTIAL TRADE PREFERENTIAL TRADE AGREEMENTS PRICE DISTORTION PRICE DISTORTIONS PRICE FLUCTUATIONS PRIMARY PRODUCTS PRODUCTION STRUCTURES PRODUCTIVITY GROWTH PROTECTION DATA PROTECTIONISM PUBLIC GOOD RATE QUOTAS RAW MILK REAL EXCHANGE RATE REAL INCOME REDUCTION IN TARIFFS REGIONALISM ROUND OF MULTILATERAL TRADE NEGOTIATIONS SAVINGS SKILLED WORKERS SUGAR SUGAR CANE TARIFF BARRIERS TARIFF LINE TARIFF RATE TARIFF RATE QUOTAS TARIFF REVENUE TARIFF REVENUES TARIFF STRUCTURE TAX TAX RATES TAXATION TERMS OF TRADE TERMS OF TRADE EFFECT TERMS OF TRADE EFFECTS TRADABLE GOODS TRADE AGREEMENTS TRADE BALANCE TRADE DISTORTIONS TRADE FLOWS TRADE LIBERALIZATION TRADE NEGOTIATIONS TRADE PATTERNS TRADE POLICIES TRADE POLICY TRADE POLICY REFORM TRADE POLICY REFORMS TRADE PREFERENCES TRADE REFORM TRADE TAXES TRANSITION ECONOMIES TREASURY UNEMPLOYMENT UNILATERAL REFORMS UNSKILLED LABOR UNSKILLED WORKERS URUGUAY ROUND VALUE ADDED VALUE OF OUTPUT VEGETABLE OILS VOLUME WAGES WELFARE GAINS WORLD ECONOMY WORLD TRADE WORLD TRADE ORGANIZATION WTO This paper analyzes the economic effects of agricultural price and merchandise trade policies around the world as of 2004 on global markets, net farm incomes, and national and regional economic welfare and poverty, using the global economy wide Linkage model, new estimates of agricultural price distortions for developing countries, and poverty elasticity's approach. It addresses two questions: to what extent are policies as of 2004 still reducing rewards from farming in developing countries and thereby adding to inequality across countries in farm household incomes? Are they depressing value added more in primary agriculture than in the rest of the economy of developing countries, and earnings of unskilled workers more than of owners of other factors of production, thereby potentially contributing to inequality and poverty within developing countries (given that farm incomes are well below non-farm incomes in most developing countries and that agriculture there is intensive in the use of unskilled labor)? Results are presented for the key countries and regions of the world and for the world as a whole. They reveal that, by moving to free markets, income inequality between countries will be reduced at least slightly, all but one-sixth of the gains to developing countries will come from agricultural policy reform, unskilled workers in developing countries the majority of whom work on farms will benefit most from reform, net farm incomes in developing countries will rise by 6 percent compared with 2 percent for non-agricultural value added, and the number of people surviving on less than US$1 a day will drop 3 percent globally. 2017-09-07T16:24:28Z 2017-09-07T16:24:28Z 2009-06 Working Paper http://documents.worldbank.org/curated/en/788661468330888728/Welfare-and-poverty-effects-of-global-agricultural-and-trade-policies-using-the-Linkage-model http://hdl.handle.net/10986/28155 English en_US Agricultural Distortions Working Paper;95 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research :: Working Paper Publications & Research