Grain Price Spikes and Beggar-Thy-Neighbor Policy Responses : A Global Economywide Analysis

When prices spike in international grain markets, national governments often reduce the extent to which that spike affects their domestic food markets. Those actions exacerbate the price spike and international welfare transfer associated with the terms of trade change. Several recent analyses have assessed the extent to which those policies contributed to the 2006-08 international price rise, but only by focusing on one commodity or using a back-of-the-envelope method. This paper provides a more comprehensive analysis that uses a global economywide model that is able to take account of the interactions between markets for farm products that are closely related in production or consumption. The model is able to estimate the impacts of those insulating policies on grain prices and on the grain trade and economic welfare of various countries. The results support the conclusion from earlier studies that there is a need for stronger World Trade Organization disciplines on export restrictions.

Bibliographic Details

Main Authors:	Jensen, Hans G, Anderson, Kym
Format:	Policy Research Working Paper biblioteca
Language:	English en_US
Published:	World Bank Group, Washington, DC 2014-08
Subjects:	AGRICULTURAL ECONOMICS, AGRICULTURAL PRICE, AGRICULTURE, ALLOCATION, ALLOWANCE, BARRIER, BORDER PRICE, CLIMATE, CLIMATE CHANGE, COMMODITIES, COMMODITY, COMMODITY PRICE, COMMODITY PRICE BOOMS, COMMUNICATION TECHNOLOGY, CONSUMER PRICES, CORRELATION COEFFICIENT, COUNTRY TO COUNTRY, CURRENCY, DAIRY, DEMAND CURVE, DEVALUATION, DEVELOPING COUNTRIES, DEVELOPING COUNTRY, DOMESTIC MARKET, DOMESTIC MARKETS, DOMESTIC PRICE, DOMESTIC PRICES, DOMESTIC PRODUCTION, ECONOMIC POLICY, ECONOMIC WELFARE, EQUILIBRIUM, EXCESS SUPPLY, EXOGENOUS SHOCK, EXOGENOUS SHOCKS, EXOGENOUS SUPPLY, EXPORT SUBSIDIES, EXPORTER, EXPORTERS, EXTREME WEATHER, EXTREME WEATHER EVENTS, FACTORS OF PRODUCTION, FINANCIAL CRISIS, FOOD EXPORT, FOOD EXPORTS, FOOD IMPORTS, FOOD MARKETS, FOOD POLICY, FOOD PRICE, FOOD PRICES, FOOD PRODUCTS, FOODS, GENERAL EQUILIBRIUM, GENERAL EQUILIBRIUM MODEL, GLOBAL ECONOMY, GOVERNMENT INTERVENTION, GOVERNMENT INTERVENTIONS, GRAIN PRODUCTION, GRAINS, HIGH-INCOME COUNTRIES, IMPORT, IMPORT PROTECTION, IMPORT RESTRICTIONS, IMPORT TARIFF, IMPORT TARIFFS, INCOME, INTERNATIONAL MARKET, INTERNATIONAL PRICE, INTERNATIONAL PRICES, INTERNATIONAL TRADE, LIVESTOCK PRODUCTS, MAIZE, MARKET ACCESS, MARKET PRICE, MARKETPLACE, MEAT, MULTILATERAL TRADE, OUTPUT, PADDY, POLICY MAKERS, POLICY RESPONSE, POLITICAL ECONOMY, PRICE CHANGE, PRICE CHANGES, PRICE COMPARISONS, PRICE DISTORTIONS, PRICE ELASTICITIES, PRICE ELASTICITY, PRICE ELASTICITY OF DEMAND, PRICE FLUCTUATIONS, PRICE IMPACTS, PRICE INCREASES, PRICE STABILIZATION, PRICE SUPPORT, PRICE SUPPORTS, PRICE VOLATILITY, PROCESSED FOODS, PRODUCER PRICE, PRODUCT MARKETS, SEVERE WEATHER, SHORTFALL, SHORTFALLS, SMALL COUNTRIES, SOCIAL SAFETY NET, SOCIAL SAFETY NETS, STOCK CHANGES, STOCKS, SUBSTITUTE, SUBSTITUTES, SUPPLY CURVE, SUPPLY RESPONSE, SUPPLY RESPONSES, SUPPLY SHOCK, SUPPLY SHOCKS, SURPLUS, SURPLUS COUNTRY, TAX, TAX RATES, TRADE BARRIERS, TRADE POLICY, TRADE RESTRICTION, TRADE RESTRICTIONS, TRADE RESTRICTIVENESS, TRADE TAXES, VOLATILITY, WHEAT, WORLD ECONOMY, WORLD MARKET, WORLD TRADE,
Online Access:	http://documents.worldbank.org/curated/en/2014/08/20127805/grain-price-spikes-beggar-thy-neighbor-policy-responses-global-economywide-analysis-grain-price-spikes-beggar-thy-neighbor-policy-responses-global-economywide-analysis http://hdl.handle.net/10986/20363
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