Measuring Distortions to Agricultural Incentives, Revisited

Notwithstanding the tariffication component of the Uruguay Round Agreement on Agriculture, import tariffs on farm products continue to provide an incomplete indication of the extent to which agricultural producer and consumer incentives are distorted in national markets. Especially in developing countries, non-agricultural policies indirectly impact agricultural and food markets. Empirical analysis aimed at monitoring distortions to agricultural incentives thus need to examine both agricultural and non-agricultural policy measures including import or export taxes, subsidies and quantitative restrictions, plus domestic taxes or subsidies on farm outputs or inputs and consumer subsidies for food staples. This paper addresses the practical methodological issues that need to be faced when attempting to undertake such a measurement task in developing countries. The approach is illustrated in two ways: by presenting estimates of nominal and relative rates of assistance to farmers in China for the period 1981 to 2005; and by summarizing estimates from an economy-wide computable general equilibrium model of the effects on agricultural versus non-agricultural markets of the project's measured distortions globally as of 2004.

Bibliographic Details

Main Authors:	Kurzweil, Marianne, Anderson, Kym, Sandri, Damiano, Martin, Will, Valenzuela, Ernesto
Language:	English
Published:	World Bank, Washington, DC 2008-04
Subjects:	ADVERSE EFFECT, ADVERSE IMPACT, AGREEMENT ON AGRICULTURE, AGRIBUSINESS, AGRIBUSINESS FIRMS, AGRICULTURAL COMMODITY, AGRICULTURAL ECONOMICS, AGRICULTURAL EXPORTS, AGRICULTURAL GOODS, AGRICULTURAL IMPORTS, AGRICULTURAL INCENTIVES, AGRICULTURAL INDUSTRIES, AGRICULTURAL MARKETS, AGRICULTURAL OUTPUT, AGRICULTURAL POLICIES, AGRICULTURAL POLICY, AGRICULTURAL POLICY INDICATORS, AGRICULTURAL PRICE, AGRICULTURAL PRICES, AGRICULTURAL PRICING, AGRICULTURAL PRODUCT, AGRICULTURAL PRODUCTION, AGRICULTURAL PRODUCTS, AGRICULTURAL PROTECTION, AGRICULTURAL PROTECTIONISM, AGRICULTURAL REFORM, AGRICULTURAL SECTOR, AGRICULTURAL SECTORS, AGRICULTURAL TRADE, AGRICULTURAL VALUE, BENCHMARK, BENCHMARK DATA, BORDER PRICES, CAPITAL FLOWS, CAPITAL INFLOWS, CENTRAL BANK, COASTAL SHIPPING, COMBINES, COMMERCIAL BANKING, COMMERCIAL BANKS, COMMODITIES, COMPARATIVE ADVANTAGE, CONSUMER CHOICES, CONSUMER SURPLUS, CONSUMERS, COTTON, COUNTRY MARKETS, CROPS, CURRENCY, CUTTING, DAIRY, DAIRY PRODUCTS, DEBT, DEMAND CURVES, DEVELOPING COUNTRIES, DEVELOPING COUNTRY, DIRECT PAYMENTS, DOLLAR VALUES, DOMESTIC CURRENCY, DOMESTIC CURRENCY PRICE, DOMESTIC MARKET, DOMESTIC PRICE, DOMESTIC PRICES, DOMESTIC PRODUCER, ECONOMIC COOPERATION, ECONOMIC DEVELOPMENT, ECONOMIC RESEARCH, ELASTICITY, EQUILIBRIUM, EXCESS DEMAND, EXCHANGE RATE, EXCHANGE RATE POLICIES, EXCHANGE RATE REGIME, EXCHANGE RATE SYSTEM, EXCHANGE RATES, EXPORT, EXPORT SECTOR, EXPORT SUBSIDIES, EXPORT SUBSIDY, EXPORTERS, EXPORTS, EXTERNALITIES, FARM, FARM INCOMES, FARM INPUTS, FARM PRODUCT, FARM PRODUCTION, FARM PRODUCTS, FARM SECTOR, FARM VALUE, FARMERS, FATS, FINANCIAL MARKET, FINANCIAL MARKETS, FOOD PRICES, FOOD PRODUCTION, FOOD PRODUCTS, FOREIGN COMPETITION, FOREIGN CURRENCIES, FOREIGN CURRENCY, FOREIGN DEBT, FOREIGN EXCHANGE, FOREIGN EXCHANGE RATE, FOREIGN TRADE, FREE MARKETS, GDP, GDP PER CAPITA, GENERAL EQUILIBRIUM, GENERAL EQUILIBRIUM ANALYSIS, GENERAL EQUILIBRIUM MODEL, GLOBAL ECONOMY, GLOBAL OUTPUT, GOVERNMENT INTERVENTION, GOVERNMENT INTERVENTIONS, GOVERNMENT REGULATION, GOVERNMENT REGULATIONS, GRAIN, GROSS VALUE, HIGH-INCOME COUNTRIES, IMPERFECT COMPETITION, IMPORT, IMPORT BARRIERS, IMPORT TARIFF, IMPORT TARIFFS, IMPORT VALUE, INCOME, INTERNATIONAL MARKET, INTERNATIONAL MARKETS, INTERNATIONAL PRICE, INTERNATIONAL PRICES, LABOR MARKETS, LIBERALIZATION, LIVESTOCK, LOCAL CURRENCY, LOGGING, MACROECONOMIC POLICY, MARGINAL COSTS, MARKET ACCESS, MARKET CONDITIONS, MARKET DISTORTIONS, MARKET FAILURES, MARKET PRICE, MARKET PRICE SUPPORT, MARKET PRICES, MARKET RATE, MARKET VALUES, MEAT, MILK, MONEY SUPPLY, MULTIPLE EXCHANGE RATES, NATIONAL ECONOMY, NATURAL RESOURCE, OPEN ECONOMY, OUTPUTS, OVERVALUATION, PARTICULAR COUNTRY, POLITICAL ECONOMY, PORK, POSITIVE EFFECTS, POULTRY, POVERTY ALLEVIATION, PREMIUM, PRICE CONTROLS, PRICE DISTORTION, PRICE DISTORTIONS, PRICE ELASTICITY, PRICE ELASTICITY OF DEMAND, PRICE ELASTICITY OF SUPPLY, PRICE LEVEL, PRICE LEVELS, PRICE SUPPORT, PRIMARY PRODUCTS, PRODUCT DIFFERENTIATION, PRODUCTION QUOTA, PROTECTION AGAINST IMPORTS, PURCHASE PRICE, QUANTITATIVE RESTRICTION, QUANTITATIVE RESTRICTIONS, QUOTA SYSTEM, RATE QUOTAS, RAW MATERIAL, RAW MATERIALS, REAL EXCHANGE RATE, REAL EXCHANGE RATE MISALIGNMENT, REAL EXCHANGE RATES, REAL GDP, RELATIVE PRICES, RULES OF ORIGIN, SECONDARY MARKET, SINGLE TARIFF, SMALL ECONOMIES, SMALL ECONOMY, SOCIAL COST, SUGAR, SUGAR BEET, SUGAR CANE, SUPPLY CURVES, TARIFF BARRIERS, TARIFF RATE, TARIFF RATES, TAX, TAXATION, TRADE AGREEMENTS, TRADE NEGOTIATIONS, TRADE POLICIES, TRADE POLICY, TRADE TAXES, TRANSACTION, TRANSITION ECONOMIES, TRANSPARENCY, UNDERVALUATION, UNFAIR COMPETITION, URUGUAY ROUND, VALUE ADDED, VALUE OF OUTPUT, VEGETABLE OILS, VOLUME, WEALTH, WELFARE ECONOMICS, WORLD MARKETS, WORLD PRICE, WORLD TRADE, WORLD TRADE ORGANIZATION, WTO, Microdata Set,
Online Access:	http://documents.worldbank.org/curated/en/2008/04/9394724/measuring-distortions-agricultural-incentives-revisited https://hdl.handle.net/10986/6711
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