Economics of developing countries by Tiago N Caldeira

By Tiago N Caldeira

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8 Very broadly, the welfare effects of trade liberalization are dominated by two factors: i) the change in allocative efficiency and ii) the change in terms of trade. 8 The Global Trade Analysis Project (GTAP) at Purdue University made a dramatic expansion of CGE models possible, sharing among the researcher a huge amount of trade-related data. WTO Agriculture Negotiations and Developing Countries: An Overview 31 Gains from allocative efficiency are realized when market distortions are removed, permitting the economy to reallocate its resources to the most productive use.

Welfare impacts in the most recent simulations of Doha Round negotiations Authors Assumptions for the agricultural sector Scenarios gains in 2015 compared to baseline calculated as the annual gains as % of base GDP Anderson et Products as imperfect substitutes Agriculture1 al. (2005a) Factor markets with perfect competition Global1 Labor and capital mobile between sectors Global with Full employment productivity All preferential agreement are taken into change2 account Doha scenario with productivity change3 Agriculture4 Francois et Products as imperfect substitutes al.

SDT main provisions Category Concessions in tariff schedules Developing country Smaller tariff reductions over a longer period Designation of special products Longer implementation period for elimination of export subsidies Smaller cuts in domestic support over a longer period Higher de minimis for domestic support No reduction commitments for LDCs Differentiation in Special safeguard mechanism rules Special consideration for State Trading Enterprises Developed country Take into account erosion of preferences Reduce tariff escalation Liberalization of tropical products markets Market access for alternative products Increased technical assistance for trade capacity Duty- and quota-free access for LDCs, where possible Decision on low-income food-deficit countries Export credits Ad hoc temporary finance for developing country imports Source: Josling (2005) 4 An important feature of the Enabling Clause was that SDT was to be phased out when countries reached a certain level of development.

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