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© 1988 Oxford University Press and the Foundation for the European Review of Agricultural Economics

research-article

Agricultural trade regimes: impact on sector proportions, real incomes and hunger in the world

KIRIT PARIKH*, GÜNTHER FISCHER** and KLAUS FROHBERG***

Indira Gandhi Institute of Development Research General Vaidya Marg Goregaon (East) Bombay 400 065 India

Summary

In the article the consequences of agricultural trade liberalization are explored with the help of the Basic Linked System (BLS) of national models developed by the Food and Agricultural Programme (FAP) of the International Institute for Applied Systems Analysis (IIASA). After a brief description of the model characteristics, the consequences of agricultural trade liberalization (1) by only the less developed countries, (2) by only the OECD countries, and (3) by all market economies are explored with respect to the impact on (a) the global market environment, (b) domestic relative prices, (c) sectoral composition, (d) real incomes, and (e) level of chronic hunger. The results of these model calculations indicate that a move to liberalized trade results in a small change in growth but that the impact on sectoral balance and hunger is significant, though not always favourable.


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