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Assessing Protectionism and Subsidies in Agriculture: A Gravity Approach
Author:
Mr. Claudio A Paiva
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Series:
IMF Working Papers
Volume/Issue:
Volume 2005: Issue 021
Language:
English
Publication Date:
01 Jan 2005
DOI:
https://doi.org/10.5089/9781451860405.001
ISBN:
9781451860405
ISSN:
1018-5941
Pages:
17
Keywords:
WP; country; trade; product; dummy variable
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This paper provides the first comprehensive empirical analysis of agricultural trade using a gravity model. The data set covers bilateral trade in agricultural goods for 152 countries over the periods 1990-93 and 1999-2002. The estimations support claims that protectionism and distortive subsidies to agriculture remain widespread in more developed nations, which are shown to import less and export more agricultural products than expected given other economic, political, and geographic determinants of trade. However, some developing regions that are often thought to be the main victims of industrial-country protectionism are also found to be relatively closed to agricultural trade.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2005: Issue 021