The Effects of Freer Trade on Global Agriculture
AAEA members release new research in JAAEA
Full trade liberalization generates a $60.33 billion increase in global welfare, 63.12% of which accrues to OECD countries. New research finds the net effect of a global free trade agreement is still overwhelmingly positive for both OECD and non-OECD countries.
In the new article “The Effects of Freer Trade on Global Agriculture” released in the open access Journal of the Agricultural & Applied Economics Association, the authors: Nathan Holtman and Stephen Devadoss from Texas Tech University as well as Angel Aguiar from Purdue University, estimate the effects of removing developed and developing countries’ trade-interventionistic policies on production, trade flows, factor prices, commodity prices and welfare.
Devadoss says, “Policy implications for this study are that movement towards free-market oriented policies is crucial for global trade as our results show agricultural production, consumption, exports, and imports expand. If policy-makers successfully navigate the plethora of domestic issues in negotiating a global free trade agreement, their countries will likely benefit. Otherwise, delaying the completion of the Doha Round will perpetuate a sustained loss in world welfare.”
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ABOUT AAEA: Established in 1910, the Agricultural & Applied Economics Association (AAEA) is the leading professional association for agricultural and applied economists, with 2,500 members in more than 60 countries. Members of the AAEA work in academic or government institutions as well as in industry and not-for-profit organizations, and engage in a variety of research, teaching, and outreach activities in the areas of agriculture, the environment, food, health, and international development. The AAEA publishes three journals, the Journal of the Agricultural and Applied Economics Association (an open access journal), the American Journal of Agricultural Economics and Applied Economic Perspectives & Policy, as well as the online magazine Choices and the online open access publication series Applied Economics Teaching Resources. To learn more, visit www.aaea.org.
Contact: Allison Ware
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