Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/162192
Authors: 
Hirsch, Cornelius
Oberhofer, Harald
Year of Publication: 
2017
Series/Report no.: 
FIW Working Paper 176
Abstract: 
Agricultural support levels are at a crossroad with reduced distortions in OECD countries and increasing support for agricultural producers in emerging economies over the last decades. This paper studies the determinants of distortions in the agricultural markets by putting a specific focus on the role of trade policy. Applying various different dynamic panel data estimators and explicitly accounting for potential endogeneity of trade policy agreements, we find that an increase in the number of bilateral free trade agreements exhibits significant short- and long-run distortion reducing effects. By contrast, WTO's Uruguay Agreement on Agriculture has not been able to systematically contribute to a reduction in agriculture trade distortions. From a policy point of view our findings thus point to a lack of effectiveness of multilateral trade negotiations.
Subjects: 
agricultural distortions
WTO
bilateral trade agreements
panel data
JEL: 
C23
C26
F13
F14
Document Type: 
Working Paper

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