THE URUGUAY ROUND AND WELFARE IN SOME DISTORTED AGRICULTURAL ECONOMIES

Authors
Citation
Je. Anderson, THE URUGUAY ROUND AND WELFARE IN SOME DISTORTED AGRICULTURAL ECONOMIES, Journal of development economics, 56(2), 1998, pp. 393-410
Citations number
12
Categorie Soggetti
Economics
ISSN journal
03043878
Volume
56
Issue
2
Year of publication
1998
Pages
393 - 410
Database
ISI
SICI code
0304-3878(1998)56:2<393:TURAWI>2.0.ZU;2-Q
Abstract
The Uruguay Round's induced changes in world agricultural prices will affect the welfare of developing countries. The standard terms of trad e effect calculation can mislead, since the 'distortion effect' operat es alongside 'the terms of trade effect'. This study of the Uruguay Ro und's impact on nine agricultural economies reveals distortion effects which are many times larger than terms of trade effects. In three of nine cases, the distortion effect reverses the impact of the terms of trade effect. In two other cases, the distortion effect raises trivial terms of trade effect up to around 1% of national income. (C) 1998 El sevier Science B.V. All rights reserved.