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Scheme of Constructing CGE Model of China's Direct Grain Subsidy Policy AgEcon
Wang, Can.
This paper introduces the model of China's direct grain subsidy policy, adopts computable general equilibrium (CGE) theory, and advances the scheme of constructing the model of China's direct grain subsidy policy. On the basis of some assumptions, such as conforming to the complete competition of market, inexistence of move of capital and labor forces among countries, unchanged exchange rate and incomplete substitution, and the main body of behavior comprising representative households, producers, local government and central government, the model established in this paper includes production module and demand module. Moreover, the model takes into account equilibrium structure, the definition of profiting and macro condition for closure, the related...
Tipo: Article Palavras-chave: Direct grain subsidy policy; CGE model; Model construction; China; Agribusiness.
Ano: 2011 URL: http://purl.umn.edu/119699
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Measuring the impact of trade policy reform in Ireland: A disaggregated analysis of household impacts AgEcon
Miller, Ana Corina; Matthews, Alan; Boysen, Ole; Donnellan, Trevor; O'Donoghue, Cathal.
The purpose of this paper is to assess the impacts of further trade liberalisation on the agricultural sector in Ireland. In addition to evaluating the aggregate impacts on agricultural production as well as the spill-over effect of this on the non-agricultural sector and for overall Irish GDP, we evaluate the effects for different types of households. In order to capture economy-wide impacts of the policy reform, a CGE model was formulated and implemented using a social accounting matrix constructed for Ireland for the year 2005. Household effects are captured using representative households. The simulation results suggest a positive impact on the Irish economy as well as on the representative households. Many agricultural sectors contract in the process...
Tipo: Conference Paper or Presentation Palavras-chave: Trade policy; CAP reform; CGE model; Macro and welfare effects; Agricultural and Food Policy; International Relations/Trade; F13; D58; I3.
Ano: 2011 URL: http://purl.umn.edu/99598
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Biofuel Growth: Global Greenhouse Gas Emissions Impacts from Changes in Forest Carbon Stocks AgEcon
Golub, Alla A.; Hertel, Thomas W.; Rose, Steven K.; Sohngen, Brent.
There is significant policy interest in liquid biofuels with appealing prospects for energy security, farm security, poverty alleviation, and climate change. Large-scale commercial biofuel production could have far reaching implications for regional and global markets – particularly those related to energy and land use. As such, large-scale biofuels growth is likely to have significant impacts on global greenhouse gas (GHG) emissions. This paper utilizes a CGE model with explicit biofuel, land, and energy markets. The model is able to estimate the effects on the broad range of input and output markets potentially affected globally by biofuels policies. One of the most controversial issues within the biofuels debate is potential indirect changes in land use...
Tipo: Conference Paper or Presentation Palavras-chave: Land use change; Biofuels; CGE model; Forest carbon stocks; GHG emissions; Resource /Energy Economics and Policy.
Ano: 2008 URL: http://purl.umn.edu/47450
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Scheme of Constructing CGE Model of China's Direct Grain Subsidy Policy AgEcon
Wang, Can.
This paper introduces me model of China's direct grain subsidy policy, adopts computable general equilibrium (CGE) theory, and advances the scheme of constructing the model of China's direct grain subsidy policy. On the basis of some assumptions, such as conforming to the complete competition of market, inexistence of move of capital and labor forces among countries, unchanged exchange rate and incomplete substitution, and the main body of behavior comprising representative households, producers, local government and central government, the model established in this paper includes production module and demand module. Moreover, the model takes into account equilibrium structure, the definition of profiting and macro condition for closure, the related...
Tipo: Article Palavras-chave: Direct grain subsidy policy; CGE model; Model construction; China; Agribusiness.
Ano: 2011 URL: http://purl.umn.edu/119697
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How does tariff-rate quota modelling affect CGE results? An application for MIRAGE AgEcon
Decreux, Yvan; Ramos, Maria Priscila.
Since the Uruguay Round Agricultural Agreement (URAA) entered into force in 1994, tariff-rate quotas (TRQs) have become the most widely used trade policy instrument to improve agricultural market access while at the same time controlling import volumes. Until now, the MIRAGE CGE model only takes into account the exogenous quota rents (MAcMap-HS6 database) allocated entirely to exporters. Unfortunately, this methodology does not authorise any regime when trade policy changes (e.g. a quota-volume increase for very sensitive agricultural products or a tariff reduction). In order to improve the treatment of TRQs in MIRAGE we model them as bilateral TRQs at the HS6 level using MAcMapHS6-v2 database. Assuming a simple scenario of bilateral trade agreement...
Tipo: Working or Discussion Paper Palavras-chave: Tariff-rate quota; TRQ; TRQ administration methods; CGE model; MIRAGE; International Relations/Trade; F13; F15; F17; Q17.
Ano: 2007 URL: http://purl.umn.edu/7206
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The Art of Exceptions: Sensitive Products in the Doha Negotiations AgEcon
Gouel, Christophe; Mitaritonna, Cristina; Ramos, Maria Priscila.
It is necessary for multilateral trade negotiations to include exceptions to accommodate politically sensitive sectors. However, given the highly concentrated distribution of agricultural protection, too many exceptions put at risk the objectives of World Trade Organization. This paper assesses the delicate balance required, based on the case of agricultural trade protection in Europe and Japan, two countries where tariff dismantling in the agricultural sector is a particularly sensitive issue. Since agricultural border protection is heterogeneous, we avoid aggregation bias by extending a multi-country computable general equilibrium model to the product level. This allows us to combine the assets from general equilibrium and partial equilibrium modeling,...
Tipo: Working or Discussion Paper Palavras-chave: Agricultural trade; Doha Development Agenda; CGE model; Disaggregation; Sensitive products; Tariff-rate quotas; Agricultural and Food Policy; C68; F13; F17; Q17; Q18.
Ano: 2010 URL: http://purl.umn.edu/115431
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The Impact of CAFTA on Employment, Production and Poverty in Honduras AgEcon
Morley, Samuel A.; Nakasone, Eduardo; Pineiro, Valeria.
In this paper we develop a dynamic CGE model to examine the impact of CAFTA on production, employment and poverty in Honduras. We model four aspects of the agreement: tariff reductions, quotas, changes in the rules of origin for maquila and more generous treatment of foreign investment. We first show that trade liberalization under CAFTA has a positive effect on growth, employment and poverty but the effect is small. What really matters for Honduras is the assembly (maquila) industry. CAFTA liberalized the rules of origin for imports into this industry. That raises the growth rate of output by 1.4% and reduces poverty by 11% in 2020 relative to what it would otherwise have been. Increasing capital formation through an increase in foreign investment in...
Tipo: Working or Discussion Paper Palavras-chave: CAFTA; Honduras; Growth; Poverty; CGE model; International Relations/Trade.
Ano: 2008 URL: http://purl.umn.edu/42349
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China's New Rural Income Support Policy: Impact on Grain Production and Rural Income Inequality AgEcon
Heerink, Nico; Kuiper, Marijke H.; Xiaoping, Shi.
The impact of China's new rural income support policy and recent price trends on grain production and rural income inequality is assessed for two villages with different degrees of market access in Northeast Jiangxi Province. Two village-level general equilibrium models are used to analyze household decision making and interactions between households within these villages. Parameter estimation and model calibration is based on data collected during an extensive survey held in these villages in the year 2000. The household classification used in these models allows us to draw conclusions that are relevant for many other villages and regions in China. Simulation results show that the income support policy does not reach its goal of promoting grain...
Tipo: Conference Paper or Presentation Palavras-chave: Income policy; Grain production; Income inequality; Villages; CGE model; China; Consumer/Household Economics; Crop Production/Industries; O20; Q12; R15.
Ano: 2006 URL: http://purl.umn.edu/25625
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The Economic Role of Nigeria’s Subsistence Agriculture in the Transition Process: Implications for Rural Development AgEcon
Apata, Temidayo Gabriel; Folayan, A.; Apata, O.M.; Akinlua, J..
This study examined the role of subsistence-oriented agriculture in Nigeria in the 1990s to 2000s. The start out by discussing the diverging economic effects of the growth of subsistence agriculture in Nigeria since the transition process started. The quantitative analysis of this sector’s role is carried out by means of an applied Computable General Equilibrium (CGE) model applying a 1994 Social Accounting Matrix (SAM) as base year data. The innovation of the article is to disaggregate primary agricultural production not by products but by farm types, which enables us to distinguish their institutional and economic characteristics. The study simulates two Structural Adjustment Programme (SAP) of the government. The results of the post SAP period highlight...
Tipo: Conference Paper or Presentation Palavras-chave: Subsistence agriculture; CGE model; Exchange rate; Institutional Development; Structural Constraints; Nigeria; Community/Rural/Urban Development.
Ano: 2011 URL: http://purl.umn.edu/108942
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Agricultural Processing and the WA Economy: A General Equilibrium Analysis AgEcon
Johnston, Peter; Islam, Nazrul.
This paper investigates the impact of an expansion in agricultural processing on the Western Australian economy by modifying and applying a Computable General Equilibrium (CGE) economic model of Western Australia (called WAM). WAM was used to simulate the effects of a $1 million expansion in eight agricultural processing industries. The results show that there is a range of positive impacts from agricultural processing. On average, a $1 million expansion in agricultural processing is estimated to increase the State’s GSP (Gross State Product) by $649,000, and total output by $1.9 million. The expansion of the Wine and spirits industry is estimated to have the largest impact while the Textile fibres, yarns and woven fabrics industry has the smallest impact...
Tipo: Conference Paper or Presentation Palavras-chave: Agricultural processing; CGE model; Agribusiness.
Ano: 2003 URL: http://purl.umn.edu/57901
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The Impact of CAFTA on Poverty, Distribution, and Growth in El Salvador AgEcon
Morley, Samuel A.; Nakasone, Eduardo; Pineiro, Valeria.
In this paper we develop a dynamic CGE model to examine the impact of CAFTA on production, employment and poverty in El Salvador. We model four aspects of the agreement: tariff reductions, quotas, changes in the rules of origin for maquila and more generous treatment of foreign investment. The model shows that CAFTA has a small positive effect on growth, employment and poverty. Tariff reduction under CAFTA adds about .2% to the growth rate of output up to 2020. Liberalizing the rules of origin for maquila has a bigger positive effect on growth and poverty mainly because it raises the demand for exportables produced by unskilled labor. We model the foreign investment effect by assuming that capital inflows go directly to capital formation. This raises the...
Tipo: Working or Discussion Paper Palavras-chave: CAFTA; El Salvador; Growth; Poverty; CGE model; Food Security and Poverty; International Relations/Trade.
Ano: 2007 URL: http://purl.umn.edu/42356
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The Impact of the Central America Free Trade Agreement on the Central American Textile Maquila Industry AgEcon
Jansen, Hans G.P.; Morley, Samuel A.; Kessler, Gloria; Pineiro, Valeria; Sanchez, Marco V.; Torero, Maximo.
While the Central America Free Trade Agreement (CAFTA) remains a hotly debated issue in all five Central American countries that are part of the treaty, most discussions are based on preconceived opinions rather than grounded in research-based results. The point of departure of the paper is that the provisions in the agreement concerning the textile maquila industry are likely to have a significant impact on household welfare, despite the already existing preferential access of textile maquila exports to the U.S. market under the rules of origin set by the Caribbean Basin Initiative (CBI) and the U.S.–Caribbean Basin Trade Partnership Act (CBTPA). What CAFTA does for maquila production in Central America is to make permanent and expand the liberalized...
Tipo: Working or Discussion Paper Palavras-chave: Apparel industry; CAFTA; Central America; CGE model; Maquila; International Relations/Trade.
Ano: 2007 URL: http://purl.umn.edu/42393
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MODELING TARIFF RATE QUOTAS IN A GLOBAL CONTEXT: THE CASE OF SUGAR MARKETS IN OECD COUNTRIES AgEcon
van der Mensbrugghe, Dominique; Beghin, John C.; Mitchell, Don.
We use mixed-complementarity-problem programming to implement tariff rate quotas (TRQs) in the global computable general equilibrium (CGE) Linkage model. We apply the approach to TRQs in sugar markets in OECD (Organization for Economic Cooperation and Development) countries. We calibrate the model on 2000 policy levels for OECD countries to reflect the full implementation of their World Trade Organization commitments. We look at reforms of TRQ and TRQ-like schemes in the European Union, the United States, and Japan, as well as multilateral trade liberalization. We derive the impact of reforms on welfare, bilateral trade flows, and terms of trade. A 33 percent multilateral decrease of ad valorem tariffs, combined with a 33 percent increase in imports under...
Tipo: Working or Discussion Paper Palavras-chave: CGE model; Doha; Liberalization; Sugar; Tariff rate quota; Trade negotiations; TRQ; International Relations/Trade.
Ano: 2003 URL: http://purl.umn.edu/18612
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DOES THE STOLPER-SAMUELSON THEOREM HOLD WITH LESS TRADE DISTORTION?: A COMPUTABLE GENERAL EQUILIBRIUM AgEcon
Bittencourt, Maurício Vaz Lobo.
This paper examines the effects of agricultural trade policy changes in the Brazilian agriculture using CGE model. An extended Salter-Swan model is employed to verify if the Stolper-Samuelson theorem holds and the consequences in terms of prices, production and resources allocation. Results show that the Stolper-Samuelson hypothesis is reversed when imports and domestic goods are poor substitutes. The reduction in the import tariff increases national income, implying that inappropriate trade policy adjustments can stand in the way of promoting rapid and equitable growth of the economy.
Tipo: Conference Paper or Presentation Palavras-chave: Stolper-Samuelson theorem; CGE model; Trade distortion; Brazilian agriculture.; International Relations/Trade.
Ano: 2003 URL: http://purl.umn.edu/22173
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Integrating biofuels into the DART model: Analysing the effects of the EU 10% biofuel target AgEcon
Kretschmer, Bettina; Peterson, Sonja; Ignaciuk, Adriana M..
Biofuels and other forms of bioenergy have received increased attention in recent times: They have partly been acclaimed as an instrument to contribute to rural development, energy security and to fight global warming but have been increasingly come under attack for their potential to contribute to rising food prices. It has thus become clear that bioenergy cannot be evaluated independently of the rest of the economy and that national and international feedback effects are important. In this paper we describe how the CGE model DART is extended to include first-generation biofuel production technologies. DART can now be used to assess the efficiency of combined climate and bioenergy policies. As a first example the effects of a 10% biofuel target in the EU...
Tipo: Conference Paper or Presentation Palavras-chave: Biofuels; CGE model; EU climate policy; Environmental Economics and Policy; Resource /Energy Economics and Policy.
Ano: 2009 URL: http://purl.umn.edu/53253
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WHAT DOES A DRY SEASON MEAN TO THE WESTERN AUSTRALIAN ECONOMY? A CGE INVESTIGATION AgEcon
Islam, Nazrul.
In this paper, by applying a Computable General Equilibrium model for Western Australia (called WAG), the impact of the 2002 dry season on the State’s wider economy is quantitatively analysed. An estimate of 40 percent loss in the production of five major groups of agricultural commodities is simulated into the model. The model results show that the State’s economy-wide total production declines by 2.3 percent. In 2001-02 dollar terms this production decline is worth more than $2.5 billion. The gross state product (GSP) for WA declines by more than one percent. The total value of the State’s exports and employment decline by 5.2 and 1.7 percent respectively.
Tipo: Conference Paper or Presentation Palavras-chave: Agriculture; Drought; CGE model; Production Economics.
Ano: 2003 URL: http://purl.umn.edu/57895
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Increasing world food prices: blessing or curse? AgEcon
Matovu, John Mary; Twimukye, Evarist P..
This study evaluates the potential impact of the recent world food prices on the Ugandan economy and possible policy options to respond to it. Uganda is largely a net exporter of some cereals whose prices increasing considerably especially maize. Using a recursive dynamic CGE model, we attempt to answer questions on who are the beneficiaries and losers after the surge in food prices. The rural producers of maize tend to benefit considerably with their poverty levels reducing. On the other hand, the urban purchasers of cereals are affected owing to the higher prices of food. this therefore suggests that the Ugandan government should take advantage of the increasing food prices by stimulating and undertaking policies that would enhance productivity...
Tipo: Report Palavras-chave: Urban poor; Food prices; CGE model; Food security; Matovu; Twimukye; Economic Policy Research centre; Agribusiness; Agricultural and Food Policy; Agricultural Finance; Community/Rural/Urban Development; Consumer/Household Economics; Crop Production/Industries; Farm Management; Food Consumption/Nutrition/Food Safety; Food Security and Poverty; Livestock Production/Industries; Production Economics.
Ano: 2009 URL: http://purl.umn.edu/54804
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