Title

Groundnut trade liberalization: Could the South help the south?

Campus Units

Economics, Center for Agricultural and Rural Development

Document Type

Article

Publication Version

Submitted Manuscript

Publication Date

2006

Journal or Book Title

World Development

Volume

34

Issue

6

First Page or Article ID Number

1016

Last Page

1036

DOI

10.1016/j.worlddev.2005.11.003

Abstract

This paper analyzes policies affecting global groundnut-products markets. The new US groundnut policy is now a minor source of distortion in world markets where India and China stand out as the major distorters. We analyze and quantify the effects of groundnut-products trade liberalization on consumer welfare and producer income. Our analysis shows that African exporters would gain significantly from reductions in protection and subsidies in India, and to a lesser extent, China, although China’s exports of food-quality groundnuts would expand dramatically. Net-importing OECD countries would suffer from higher world prices. The paper draws direct implications for the Doha trade negotiations.

Comments

This is a working paper of an article published in World Development 34 (2006): 1016, doi:10.1016/j.worlddev.2005.11.003.