Valenzuela, ErnestoAnderson, Kymvan der Mensbrugghe, Dominique2017-09-072017-09-072009-06https://hdl.handle.net/10986/28155This paper analyzes the economic effects of agricultural price and merchandise trade policies around the world as of 2004 on global markets, net farm incomes, and national and regional economic welfare and poverty, using the global economy wide Linkage model, new estimates of agricultural price distortions for developing countries, and poverty elasticity's approach. It addresses two questions: to what extent are policies as of 2004 still reducing rewards from farming in developing countries and thereby adding to inequality across countries in farm household incomes? Are they depressing value added more in primary agriculture than in the rest of the economy of developing countries, and earnings of unskilled workers more than of owners of other factors of production, thereby potentially contributing to inequality and poverty within developing countries (given that farm incomes are well below non-farm incomes in most developing countries and that agriculture there is intensive in the use of unskilled labor)? Results are presented for the key countries and regions of the world and for the world as a whole. They reveal that, by moving to free markets, income inequality between countries will be reduced at least slightly, all but one-sixth of the gains to developing countries will come from agricultural policy reform, unskilled workers in developing countries the majority of whom work on farms will benefit most from reform, net farm incomes in developing countries will rise by 6 percent compared with 2 percent for non-agricultural value added, and the number of people surviving on less than US$1 a day will drop 3 percent globally.en-USCC BY 3.0 IGOACCESSION NEGOTIATIONSAGGREGATE IMPORTSAGRICULTURAL ECONOMICSAGRICULTURAL ECONOMYAGRICULTURAL GOODSAGRICULTURAL IMPORTSAGRICULTURAL INCENTIVESAGRICULTURAL LANDAGRICULTURAL MARKETSAGRICULTURAL POLICIESAGRICULTURAL POLICYAGRICULTURAL PRICEAGRICULTURAL PRICE SUPPORTSAGRICULTURAL PRODUCTIONAGRICULTURAL PROTECTIONAGRICULTURAL PROTECTIONISMAGRICULTURAL SUBSIDIESAGRICULTURAL TARIFFAGRICULTURAL TARIFFSAGRICULTURAL TRADEAGRICULTURAL VALUEAGRICULTUREANTI-TRADEAPPARELAPPLIED TARIFFBANANASBASE YEARBEETBENCHMARKBENCHMARK DATABILATERAL TARIFFBILATERAL TARIFFSBILATERAL TRADEBORDER MEASURESCAPITAL OWNERSCOMMODITIESCOMPARATIVE ADVANTAGECOMPARATIVE ADVANTAGESCONSTANT RETURNS TO SCALECONSUMER PRICE INDEXCONSUMER PRICESCONSUMERSCOST OF CAPITALCOTTONCOUNTRY MARKETSCROPSCURRENT ACCOUNTCURRENT ACCOUNT BALANCECUSTOMSCUSTOMS REVENUEDAIRYDAIRY PRODUCTSDEMAND SHOCKSDEVELOPED COUNTRIESDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPMENT ECONOMICSDEVELOPMENT POLICYDISTRIBUTION OF INCOMEDOMESTIC CONSUMPTIONDOMESTIC MARKETSDOMESTIC PRODUCTIONDOMESTIC SALESECONOMIC IMPLICATIONSECONOMIC POLICYECONOMIC SECTORSECONOMIC SIZEECONOMIC WELFAREELASTICITYEXCHANGE RATEEXCHANGE RATE REGIMESEXOGENOUS SHOCKSEXPORTEXPORT DEMANDEXPORT PRICEEXPORT SHAREEXPORT SUBSIDIESEXPORT SUBSIDYEXPORT TAXESEXPORTERSEXPORTSEXTERNALITIESEXTREME POVERTYFACTORS OF PRODUCTIONFARMFARM INCOMEFARM INCOMESFARM PRODUCTIONFARM PRODUCTSFARM SECTORFARM VALUEFARMERSFARMSFATSFINANCIAL FLOWSFOOD PRICEFOOD PRODUCTIONFOOD PRODUCTSFOREIGN INVESTMENTFREE ACCESSFREE MARKETSFREE TRADEFULL LIBERALIZATIONGDPGENERAL EQUILIBRIUMGENERAL EQUILIBRIUM MODELGINI COEFFICIENTGLOBAL COMPUTABLE GENERAL EQUILIBRIUMGLOBAL ECONOMIC PROSPECTSGLOBAL ECONOMYGLOBAL EXPORTSGLOBAL MARKETSGLOBAL OUTPUTGLOBAL TRADEGLOBAL TRADE ANALYSISGLOBALIZATIONGRAINHOUSEHOLDSIMPACT OF TRADEIMPORT BARRIERSIMPORT INCREASESIMPORT PROTECTIONIMPORT TARIFFIMPORT TARIFFSIMPORTSINCOMEINCOME TAXINEQUALITYINTENSIVE FARMINGINTERNATIONAL ECONOMICSINTERNATIONAL MARKETSINTERNATIONAL PRICESINTERVENTION MEASURESITCLIVESTOCKLOSS OF TARIFF REVENUEMARGINAL COSTSMARKET ACCESSMARKET FAILURESMEATMEAT PRODUCTSMILKMULTILATERAL TRADENATIONAL ECONOMYNATIONAL INCOMENEW MARKETSNON-TARIFF BARRIERSPERFECT COMPETITIONPOLITICAL ECONOMYPOVERTY ALLEVIATIONPREFERENTIAL ACCESSPREFERENTIAL TRADEPREFERENTIAL TRADE AGREEMENTSPRICE DISTORTIONPRICE DISTORTIONSPRICE FLUCTUATIONSPRIMARY PRODUCTSPRODUCTION STRUCTURESPRODUCTIVITY GROWTHPROTECTION DATAPROTECTIONISMPUBLIC GOODRATE QUOTASRAW MILKREAL EXCHANGE RATEREAL INCOMEREDUCTION IN TARIFFSREGIONALISMROUND OF MULTILATERAL TRADE NEGOTIATIONSSAVINGSSKILLED WORKERSSUGARSUGAR CANETARIFF BARRIERSTARIFF LINETARIFF RATETARIFF RATE QUOTASTARIFF REVENUETARIFF REVENUESTARIFF STRUCTURETAXTAX RATESTAXATIONTERMS OF TRADETERMS OF TRADE EFFECTTERMS OF TRADE EFFECTSTRADABLE GOODSTRADE AGREEMENTSTRADE BALANCETRADE DISTORTIONSTRADE FLOWSTRADE LIBERALIZATIONTRADE NEGOTIATIONSTRADE PATTERNSTRADE POLICIESTRADE POLICYTRADE POLICY REFORMTRADE POLICY REFORMSTRADE PREFERENCESTRADE REFORMTRADE TAXESTRANSITION ECONOMIESTREASURYUNEMPLOYMENTUNILATERAL REFORMSUNSKILLED LABORUNSKILLED WORKERSURUGUAY ROUNDVALUE ADDEDVALUE OF OUTPUTVEGETABLE OILSVOLUMEWAGESWELFARE GAINSWORLD ECONOMYWORLD TRADEWORLD TRADE ORGANIZATIONWTOWorking PaperWorld Bank10.1596/28155