Agricultural Trade Liberalization in a Multisector World Model
No hay miniatura disponible
Fecha
Autores
Título de la revista
ISSN de la revista
Título del volumen
Editor
Resumen
Descripción
Impacts of agricultural and nonagricultural trade liberalization on agriculture are assessed in a
multi-commodity, multi-country framework. By modeling simultaneously all goods sectors of the
economy, we evaluate the importance of: (a) relative price changes between sectors, and (b)
income and exchange-rate adjustments that follow trade liberalization in a world of floating rates.
Specifically, we compare two cases using a static world policy simulation (SWOPSIM) model:
agricultural multilateral liberalization and complete multilateral liberalization with floating exchange
rates for all countries/regions. In both cases agricultural commodity prices tend to increase,
an effect which is more pronounced when currency values adjust. The developing countries,
in particular Argentina, Brazil and Mexico, have the most significant advances in agricultural and
total production when exchange rates vary. Moreover, the gains from international trade are extended
to all countries/regions explicitly specified in the model.