Journal Article

International Marketing Margins for Agricultural Products: Effects of Some Nontariff Trade Barriers

Paul Gallagher

in American Journal of Agricultural Economics

Published on behalf of Agricultural and Applied Economics Association

Volume 80, issue 2, pages 325-336
Published in print May 1998 | ISSN: 0002-9092
Published online May 1998 | e-ISSN: 1467-8276 | DOI: http://dx.doi.org/10.2307/1244505
International Marketing Margins for Agricultural Products: Effects of Some Nontariff Trade Barriers

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Trade uncertainty occurs when quality changes or when Administrative Trade Barriers (ATBs) cause a chance that a commodity will not enter the import market. Trade uncertainty adversely affects marketing firms and commodity trade. But arbitrage still precludes the distribution of rents to middlemen. An exporter subsidy may correct price distortions and expand trade towards the highest world welfare. The case for intervention appears strongest in thin markets with a low number of trade transactions and perishable commodities. Nonetheless, promoting trade liberalization before other interventions may still make sense when ATBs are present because reduced trade uncertainty also improves world welfare.

Keywords: agricultural trade; margins; nontariff trade barriers; uncertainty; F130; Q130; Q170

Journal Article.  0 words. 

Subjects: International Trade ; Agricultural Economics

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