Trade Policy Reforms Research Articles

Economic Reforms in India Since 1991: Has Gradualism Worked?

Opinions on the causes of India's growth deceleration vary. World economic growth was slower in the second half of the 1990s, and that would have had some dampening effect, but India's dependence on the world economy is not large enough for this to account for the slowdown. Critics of liberalization have blamed the slowdown on the effect of trade policy reforms on domestic industry. However, the opposite view is that the slowdown is due not to the effects of reforms, but rather to the failure to implement the reforms effectively. This in turn is often attributed to India's gradualist approach to reform, which has meant a frustratingly slow pace of implementation. However, even a gradualist pace should be able to achieve significant policy changes over ten years. This paper examines India's experience with gradualist reforms from this perspective.

The Effects of Trade Liberalization on Imports in Selected Developing Countries

This paper analyses the impact of the reduction of tariff and nontariff barriers on the imports of 22 selected developing countries, utilizing dynamic panel data techniques. Domestic income and relative prices are found to be significant determinants of import growth. In addition, the results indicate that import duties reduce import growth, but the effect varies according to the region and the type of trade policy regime existing in the country. The results also show that the elimination of trade policy distortions has a strong, positive impact on import growth. Finally, it is found that income and price elasticities are higher as a result of trade policy reform.

Agriculture and Rural Development: Need for Reforms

There has been a significant slowdown in agricultural growth and decline in poverty in the 90's. The reasons include stagnating yield levels in irrigated pockets, non-realisation of potential growth in non-irrigated regions, lack of sufficient buoyancy in the non-farm sector, decline in rural non-agricultural employment, casualisalion of labour, rising relative cereal prices etc. In this scenario, major new initiatives are needed to spur growth in agriculture and thereby induce growth in other sectors through inter-sectoral linkages. Reforms are needed in pricing policy, trade policy and land relations. The major pre-requisite for agricul1ural growth is investment in irrigation, rural infrastructure, R&D in unirrigated regions. Due to significant gestation lags in these sectors, private investment is unlikely to flow in and public sector investment is a must. Resources for public investment should be raised by curtailing and diverting resources from current expenditure like food, fertiliser and power subsidies through better targeting and rationalisation of tariffs. To this end, reforms on pricing of inputs and outputs (supported procurement prices) are needed. The needed trade policy reforms include export emphasis on non-food crops like milk and milk products and fruits and vegetables and continuation of self-sufficiency policy in case of basic food crops. These reforms need to be supplemented by rigorous land reforms to realise the full potential of benefits from trade liberalisation.

The role of grasslands in world food trade: Projections of future trade policy reforms*

Consumption of livestock products has been increasing rapidly, especially in the developing world. Demand for non‐ruminant meats has been increasing more rapidly than that for ruminant meats. This has been accompanied by rapid supply growth, especially in industrial grains‐based livestock production systems. As a consequence, the importance of grasslands in livestock production and trade has been declining. Barriers to trade in livestock products are generally much higher for products that can be produced on grasslands (i.e., dairy products and ruminant meats) than for non‐ruminant meats, despite the achievements of the Uruguay Round. A new WTO Round of agricultural trade negotiations began in March 2000, and this paper simulates outcomes of possible new trade agreements. Trade reforms that are inclusive of the more heavily protected grasslands products are projected to provide a boost to grassland livestock farming and therefore to moderate the downward trend in grasslands’ contribution to livestock production and trade.

WTO DDA and Negotiations on Healthcare Servics

WTO DDA and Negotiations on Healthcare Servics

Livestock production and the environment: Some impacts of growth and trade liberalisation

Large increases in livestock production have led to increased pressures on the natural environment in many regions of the world. In the absence of new environmental policies, these environmental problems are projected to worsen as demand for livestock products continues to grow. In this paper we investigate the linkages between growth, trade and the environment for livestock to the year 2005, including Uruguay Round trade reform. We focus on nitrate pollution from livestock sources, given projected changes in the world economy. Our analysis suggests that the aggregate environmental implications of Uruguay Round‐type trade policy reform appear to be small or even positive for world livestock production. On the other hand, in the absence of improved environmental policies, the aggregate environmental impact of growth and structural economic change to 2005 is likely to be of much greater consequence to those concerned about environmental damage.

The Fast Track from the Soviet Union to the World Economy: External Liberalization in Estonia and Latvia

There Exists An Extensive Literature On The Political Economy of external liberalization in emerging markets. However, the remarkable progress of Estonia and Latvia in external liberalization has not yet been addressed systematically in the academic literature from a political economy angle. This article aims not only to make a contribution to fill this gap in the literature by focusing on trade policy reform, but also to address three other issues.

Informal sector in general equilibrium: welfare effects of trade policy reforms

The paper demonstrates the welfare effects of trade policy reforms in a general equilibrium framework, in the presence of an informal sector in the economy. The methodology we developed in the paper allows us to use a full-employment model with wage differential. Tariff cuts in this model have ambiguous effects because of the preexisting wage differential and due to the cross-effects in the three-good structure, which is used in some recent works in trade theory. Complementarity in production may lead to negative welfare effects despite improvements in terms of trade.

TRADE POLICY REFORM AND TEXTILE CLOTHING AND FOOTWEAR INDUSTRIES: AUSTRALIA 1992/93–1996/97

Economic Papers: A journal of applied economics and policyVolume 20, Issue 2 p. 1-12 TRADE POLICY REFORM AND TEXTILE CLOTHING AND FOOTWEAR INDUSTRIES: AUSTRALIA 1992/93–1996/97 KANKESU JAYANTHAKUMARAN, KANKESU JAYANTHAKUMARAN Department of Economics, University of Wollongong, NSW 2522. This is a revision of a paper presented at the SMEs in the Global Economy Conference, Wollongong, 16 June 2000 in a session organised by Charles Harvie and Boon Chye Lee, University of Wollongong. I am grateful for the comments made by Don Lewis and editorial assistance by Rob Hood.Search for more papers by this author KANKESU JAYANTHAKUMARAN, KANKESU JAYANTHAKUMARAN Department of Economics, University of Wollongong, NSW 2522. This is a revision of a paper presented at the SMEs in the Global Economy Conference, Wollongong, 16 June 2000 in a session organised by Charles Harvie and Boon Chye Lee, University of Wollongong. I am grateful for the comments made by Don Lewis and editorial assistance by Rob Hood.Search for more papers by this author First published: 13 April 2010 https://doi.org/10.1111/j.1759-3441.2001.tb00276.xCitations: 2 AboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinked InRedditWechat Citing Literature Volume20, Issue2June 2001Pages 1-12 RelatedInformation

India's Trade Policy Reforms and Industry Competitiveness in the 1980s

The paper proposes a method of measuring and analyzing competitiveness, and applies it to Indian manufacturing data of 1980/81, 1987/88 and 1991/92. The method consists of computing a unit cost ration and breaking it down into various components, ditinguishing between comparative advantage measured at shadow prices, and competitive advantage measured at market prices. The difference, equal to the sum of all price ditortions, may enhance or diminish competitiveness, depending on whether the distortions are cost‐increasing or ‐decreasing. The study reviews first the limited trade reforms of the 1980s and examines whether they have led to increased competitiveness. Although the present study is limited to less than the full potential of the method, due to lack of adequate data, it demonstrates, that the policy changes of the 1980s have failed to enhance the competitiveness of the industrial sector as a whole, while some industries have undergone substantive changes. In three industry case studies the results are compared with the findings of earlir studies.

Who determines Mexican trade policy?

Using a political economy approach, we analyze the pattern of Mexican manufacturing tariff protection during the period of trade policy reforms. Between 1985 and 1990, Mexico experienced both important inflows of foreign direct investment (FDI) and a significant trade liberalization. The approach incorporates the effects of FDI lobbying on tariff formation. Results support the proposed approach in which the presence of FDI has a strong influence on the determination of the pattern of protection. FDI-intensive sectors tended to be ‘over-protected’, though the move towards greater openness was associated with a reduction in the influence of FDI lobbying.

Strategies and impact of agro‐allied parastatals reform in Nigeria

AbstractThis study examines the reform of agro‐allied parastatals in Nigeria and determine the impact financially, economically and socially. Three enterprises, Flour Mills of Nigeria Limited (FMNL), Okitipupa Oil Palm Company (OOPC) and Nichemtex Industries Limited (NIL), were privatized in Nigeria under a reform programme aimed at improving the performance of agribusinesses in the country. The exercise was successfully conducted through public offer of shares and private placement. The reform led to an improvement in profitability, productivity, financial leverage and liquidity position of the enterprises. The social impact of privatization was also favourable. It has no adverse consequences on job security, level of employment and participation of employees in trade union matters. Successful implementation of the reform was due to several factors including high level of professional competence and dedication of officials connected with the reform, a high degree of transparency and strict compliance with laid down guidelines. At the enterprise level, the positive changes recorded by the enterprises came about through the adoption of a number of coping strategies such as the maintenance of diverse product mix, expansion of export potentials and upgrading of product quality, improved marketing management, technological restructuring and improved techniques of sourcing raw materials. At the macro level, some policy actions such as trade policy reforms and price liberalization also played significant role in enhancing the performance of the enterprises after privatization.

Australia in the International Economy

At the start of the twentieth century, Australia was arguably the highest-income country in the world. By 1950 it was ranked third; by 1970 it was eighth; and by 1999 it was twenty-sixth, according to the World Bank Atlas method of measuring GNP per capita (or twentieth using the World Bank's Purchasing Power Parity method)--not counting several rich countries with less than one million people. By that standard at least, the long-term performance of Australia's economy has been relatively poor over the past century. Over the decade of the 1990s, by contrast, Australia has, according to that same World Bank source, 1 out-performed all other advanced economies other than Ireland and Norway in terms of GDP per capita growth. This difference between the economy's recent and earlier performances is arguably due in no small part to the economic policy reforms of the past two decades and in particular the belated opening of the Australian economy to the rest of the world. Having been more protectionist towards manufacturing than all other OECD countries except New Zealand for most of the century, and having stood aside from the industrial trade policy reforms agreed to by other Contracting Parties to the General Agreement on Tariffs and Trade (GATT) in the first seven rounds of multilateral trade negotiations (1947 to 1979), Australia has undergone remarkable reforms in the late 20th century. The present chapter first explores the extent to which the Australian economy has become more integrated into international markets in the past two decades, not just absolutely but also relative to the rest of the world. It then focuses on how the structure of our trade has changed and on the extent to which markets abroad for Australian export products have opened up, this being another potential contributor to the internationalisation of our economy. A third contributor is the reduction in non-governmental barriers to trade, most notably via the information technology revolution. The chapter concludes by examining opportunities and challenges ahead for Australian businesses and governments assuming the recent frenetic pace of globalization continues.

Understanding the Effects of Trade Policy Reform: The Case of South Africa

Understanding the Effects of Trade Policy Reform: The Case of South Africa

The Krueger‐Schiff‐Valdés Study 10 Years Later: A Latin American Perspective

Previous articleNext article No AccessThe Krueger‐Schiff‐Valdés Study 10 Years Later: A Latin American Perspective*Jorge Quiroz and Luis OpazoJorge QuirozGERENS Ltda. and Universidad de Chile Search for more articles by this author and Luis OpazoGERENS Ltda Search for more articles by this author GERENS Ltda. and Universidad de ChileGERENS LtdaPDFPDF PLUS Add to favoritesDownload CitationTrack CitationsPermissionsReprints Share onFacebookTwitterLinkedInRedditEmail SectionsMoreDetailsFiguresReferencesCited by Economic Development and Cultural Change Volume 49, Number 1October 2000 Article DOIhttps://doi.org/10.1086/452496 Views: 6Total views on this site Citations: 4Citations are reported from Crossref © 2000 by The University of Chicago. All rights reserved.PDF download Crossref reports the following articles citing this article:Kym Anderson Krueger, Schiff, and Valdés Revisited: Agricultural Price and Trade Policy Reform in Developing Countries since 1960, Applied Economic Perspectives and Policy 32, no.22 (Jun 2010): 195–231.https://doi.org/10.1093/aepp/ppq005Steven M. Helfand, Gervásio Castro de Rezende The Impact of Sector-Specific and Economy-Wide Policy Reforms on the Agricultural Sector in Brazil: 1980â98, Contemporary Economic Policy 22, no.22 (Apr 2004): 194–212.https://doi.org/10.1093/cep/byh014Alberto Valdés, Alexander F. McCalla Where the interests of developing countries converge and diverge, (Mar 2004): 136–148.https://doi.org/10.1017/CBO9780511550676.008Steven M. Helfand, Gervasio Castro de Rezende Brazilian Agriculture in the 1990s: Impact of the Policy Reforms, SSRN Electronic Journal (Jan 2001).https://doi.org/10.2139/ssrn.290262

Globalisation and Trade Policy Reform: Whither the Automobile Components Sector in South Africa?

As in the case of many formerly inward oriented economies, South African industry is facing a new competitive environment as trade barriers fall. The initial result of this reform in trade policy has been a sharp increase in the trade deficit in the automobile and components sector. A survey of the major auto assemblers and a comparative review of the automobile sector in Brazil and India suggests that the prognosis for the future of the South African components industry is not good unless corrective action is taken. This will involve responses from a variety of stakeholders. A number of policy responses are discussed identifying both the relevant stakeholders and the policy instruments which might be utilised.

Agricultural trade policy reform in South Asia: the role of the Uruguay round and policy options for the future WTO agenda

This paper examines the role of the Uruguay Round Agreement on Agriculture (URAA) in agricultural trade policy reform in South Asia and policy options for the future reform agenda of the World Trade Organization (WTO). A key policy inference is that, to be effective, planning for freeing agriculture should involve simultaneous reforms of import and export regimes, and domestic production support mechanisms. Policy related lending, in particular provision of financial support for social safety programs, can play an important role in making such comprehensive reforms politically palatable and feasible. While overloading the WTO with matters that fall beyond its purview may be counterproductive, there is certainly a case for a coordinated effort involving the WTO and international development finance institutions.

Joint trade liberalization and tax reform in a small open economy: the case of Egypt

We develop a CGE model of the Egyptian economy to analyze the impact of various trade liberalization scenarios, allowing distortionary domestic taxes to vary endogenously in order to satisfy a fixed real government revenue target. We decompose computed welfare gains into effects from tax reform, trade reform, and their interaction. Scenarios include removal or unification of the consumption tax, capital tax, or both, and tariff unification, a free-trade agreement with the European Union, and unilateral tariff elimination. Welfare effects depend critically on the type of revenue replacement tax. While both are important, neither trade-policy reform nor tax reform dominates.

Trade Policy Reforms and Industrial Adjustment in Sri Lanka

The World EconomyVolume 23, Issue 3 p. 387-404 Trade Policy Reforms and Industrial Adjustment in Sri Lanka Prema-chandra Athukorala, Prema-chandra Athukorala Australian National University,Search for more papers by this authorSisira Jayasuriya, Sisira Jayasuriya La Trobe UniversitySearch for more papers by this author Prema-chandra Athukorala, Prema-chandra Athukorala Australian National University,Search for more papers by this authorSisira Jayasuriya, Sisira Jayasuriya La Trobe UniversitySearch for more papers by this author First published: 17 December 2002 https://doi.org/10.1111/1467-9701.00278Citations: 8AboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Citing Literature Volume23, Issue3March 2000Pages 387-404 RelatedInformation

Strategies and impact of agro-allied parastatals reform in Nigeria

Abstract This study examines the reform of agro-allied parastatals in Nigeria and determine the impact financially, economically and socially. Three enterprises, Flour Mills of Nigeria Limited (FMNL), Okitipupa Oil Palm Company (OOPC) and Nichemtex Industries Limited (NIL), were privatized in Nigeria under a reform programme aimed at improving the performance of agribusinesses in the country. The exercise was successfully conducted through public offer of shares and private placement. The reform led to an improvement in profitability, productivity, financial leverage and liquidity position of the enterprises. The social impact of privatization was also favourable. It has no adverse consequences on job security, level of employment and participation of employees in trade union matters. Successful implementation of the reform was due to several factors including high level of professional competence and dedication of officials connected with the reform, a high degree of transparency and strict compliance with laid down guidelines. At the enterprise level, the positive changes recorded by the enterprises came about through the adoption of a number of coping strategies such as the maintenance of diverse product mix, expansion of export potentials and upgrading of product quality, improved marketing management, technological restructuring and improved techniques of sourcing raw materials. At the macro level, some policy actions such as trade policy reforms and price liberalization also played significant role in enhancing the performance of the enterprises after privatization.