Reducing Distortions in International Commodity Markets

World commodity markets and particularly the markets for agricultural commodities remain highly distorted despite the wave of liberalization that has swept world trade since the 1980s. Commodity markets are distorted on both the export and the import sides, with serious implications for world prices and their volatility. Very few of the price distortions found in commodity markets can be justified on the grounds of dealing with market failures. Rather, most policies that affect commodity prices are designed to transfer resources to favored groups by raising or lowering prices. Policies may target the level and/or the volatility of prices, and the pursuit of one type of policy objective may have unintended consequences in generating further distortions. Moreover, some commodity markets are characterized by imperfect competition. Where monopolies or oligopolies in trade arise, either because of government regulation or through other barriers to entry, distortions may arise that call for application of antitrust laws and other forms of pro-competitive policy action.

Bibliographic Details

Main Authors:	Hoekman, Bernard, Martin, Will
Format:	Brief biblioteca
Language:	English
Published:	World Bank, Washington, DC 2012-05
Subjects:	ACCESS TO MARKETS, AGRICULTURE, ANTITRUST, ANTITRUST LAWS, BARRIERS TO ENTRY, CARTEL, COMMODITIES, COMMODITY, COMMODITY PRICE, COMMODITY PRICES, COMPETITION POLICY, COMPETITIVE MARKET, CONSUMERS, DEVELOPING COUNTRIES, DOMESTIC PRICE, DOMESTIC PRICES, ECONOMIC EFFECTS, ECONOMIC GROWTH, ECONOMICS, EMERGING MARKETS, EXCISE TAXES, EXPENDITURES, EXPORT BARRIERS, EXPORT MARKETS, EXPORTS, FOOD PRICES, FOREIGN ASSETS, FOREIGN DIRECT INVESTMENT, FOREIGN MARKETS, GLOBALIZATION, GOVERNMENT REGULATION, HOME MARKET, IMPERFECT COMPETITION, IMPORT BARRIERS, INCOME, INCOMES, INDUSTRIAL COUNTRIES, INTERNATIONAL BUSINESS, INTERNATIONAL COMPETITION, INTERNATIONAL COOPERATION, INTERNATIONAL TRADE, JURISDICTION, JURISDICTIONS, LAW ENFORCEMENT, LIBERALIZATION, LOW-INCOME COUNTRIES, MARKET BEHAVIOR, MARKET COMPETITION, MARKET CONCENTRATION, MARKET DISTORTIONS, MARKET FAILURES, MARKET POWER, MARKET STRUCTURE, MARKET STRUCTURES, MONOPOLIES, MONOPOLY, MONOPSONY, MONOPSONY POWER, MOTIVATION, MULTILATERAL TRADE, NATURAL RESOURCE, NATURAL RESOURCES, NEGATIVE EXTERNALITIES, OLIGOPOLY, OUTPUT, POLITICAL ECONOMY, PRICE DISTORTIONS, PRICE LEVELS, PRICE VOLATILITY, PROTECTIONISM, RELEVANT MARKETS, RENTS, RETAIL, RETAIL PRICES, SOFT BUDGET CONSTRAINTS, SUBSTITUTES, SUPPLIERS, TAX, TAXATION, TRADE POLICIES, TRADE POLICY, TRADING SYSTEM, TRANSPARENCY, URUGUAY ROUND, VOLATILITY, WEALTH, WORLD ECONOMY, WORLD TRADE, WORLD TRADE ORGANIZATION, WTO,
Online Access:	http://documents.worldbank.org/curated/en/2012/05/16282014/reducing-distortions-international-commodity-markets http://hdl.handle.net/10986/10041
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