Policy bias and agriculture: partial and general equilibrium measures

The paper examines the impact of industrial protection, agricultural export taxes, and overvaluation of the exchange rate on the balance between the agricultural and non-agricultural sectors. A variety of agricultural terms-of-trade indices are constructed to measure the policy bias against agricult...

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Detalles Bibliográficos
Autores principales: Bautista, Romeo M., Robinson, Sherman, Tarp, Finn, Wobst, Peter
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 1998
Materias:
Acceso en línea:https://hdl.handle.net/10568/161242
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author Bautista, Romeo M.
Robinson, Sherman
Tarp, Finn
Wobst, Peter
author_browse Bautista, Romeo M.
Robinson, Sherman
Tarp, Finn
Wobst, Peter
author_facet Bautista, Romeo M.
Robinson, Sherman
Tarp, Finn
Wobst, Peter
author_sort Bautista, Romeo M.
collection Repository of Agricultural Research Outputs (CGSpace)
description The paper examines the impact of industrial protection, agricultural export taxes, and overvaluation of the exchange rate on the balance between the agricultural and non-agricultural sectors. A variety of agricultural terms-of-trade indices are constructed to measure the policy bias against agriculture in a general equilibrium framework that incorporates traded and non-traded goods. These general equilibrium measures are compared to earlier work in a partial equilibrium framework assuming perfect substitutability between domestic and traded goods. Starting from a stylized computable general equilibrium (CGE) model of Tanzania, we simulate a 25 percent tariff on non-agriculture and a 25 percent export tax on agriculture. We also consider the impact of changes in the equilibrium exchange rate. The results indicate that the partial equilibrium measures miss much of the action operating through indirect product and factor market linkages, while overstating the strength of the linkages between changes in the exchange rate and prices of traded goods on the agricultural terms of trade.
format Artículo preliminar
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language Inglés
publishDate 1998
publishDateRange 1998
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spelling CGSpace1612422025-11-06T06:34:04Z Policy bias and agriculture: partial and general equilibrium measures Bautista, Romeo M. Robinson, Sherman Tarp, Finn Wobst, Peter terms of trade equilibrium theory mathematical models computable general equilibrium models trade The paper examines the impact of industrial protection, agricultural export taxes, and overvaluation of the exchange rate on the balance between the agricultural and non-agricultural sectors. A variety of agricultural terms-of-trade indices are constructed to measure the policy bias against agriculture in a general equilibrium framework that incorporates traded and non-traded goods. These general equilibrium measures are compared to earlier work in a partial equilibrium framework assuming perfect substitutability between domestic and traded goods. Starting from a stylized computable general equilibrium (CGE) model of Tanzania, we simulate a 25 percent tariff on non-agriculture and a 25 percent export tax on agriculture. We also consider the impact of changes in the equilibrium exchange rate. The results indicate that the partial equilibrium measures miss much of the action operating through indirect product and factor market linkages, while overstating the strength of the linkages between changes in the exchange rate and prices of traded goods on the agricultural terms of trade. 1998 2024-11-21T09:54:23Z 2024-11-21T09:54:23Z Working Paper https://hdl.handle.net/10568/161242 en Open Access application/pdf International Food Policy Research Institute Bautista, Romeo M.; Robinson, Sherman; Tarp, Finn; Wobst, Peter. 1998. Policy bias and agriculture;partial and general equilibrium measures. TMD Discussion Paper 25. https://hdl.handle.net/10568/161242
spellingShingle terms of trade
equilibrium theory
mathematical models
computable general equilibrium models
trade
Bautista, Romeo M.
Robinson, Sherman
Tarp, Finn
Wobst, Peter
Policy bias and agriculture: partial and general equilibrium measures
title Policy bias and agriculture: partial and general equilibrium measures
title_full Policy bias and agriculture: partial and general equilibrium measures
title_fullStr Policy bias and agriculture: partial and general equilibrium measures
title_full_unstemmed Policy bias and agriculture: partial and general equilibrium measures
title_short Policy bias and agriculture: partial and general equilibrium measures
title_sort policy bias and agriculture partial and general equilibrium measures
topic terms of trade
equilibrium theory
mathematical models
computable general equilibrium models
trade
url https://hdl.handle.net/10568/161242
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AT robinsonsherman policybiasandagriculturepartialandgeneralequilibriummeasures
AT tarpfinn policybiasandagriculturepartialandgeneralequilibriummeasures
AT wobstpeter policybiasandagriculturepartialandgeneralequilibriummeasures