## Assessing Protectionism and Subsidies in Agriculture: A Gravity Approach

_IMF Working Papers, January 1, 2005_

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## Bibliographic details
- Authors: Claudio A Paiva
- Published: January 1, 2005
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451860405.001

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### Research scope and data
- First comprehensive empirical analysis of agricultural trade using a gravity model.
- Data set covers bilateral trade in agricultural goods for 152 countries over the periods 1990-93 and 1999-2002.
- Author: Claudio A Paiva.
- Date: January 1, 2005.
- Pages: 17.
- Volume: 2005.
- Issue: 021.
- Series: Working Paper No. 2005/021.
- DOI: https://doi.org/10.5089/9781451860405.001.
- Stock No: WPIEA2005021.
- ISBN: 9781451860405.
- ISSN: 1018-5941.

### Key findings
- Estimations support claims that protectionism and distortive subsidies to agriculture remain widespread in more developed nations.
- More developed nations are shown to import less and export more agricultural products than expected given other economic, political, and geographic determinants of trade.
- Some developing regions that are often thought to be the main victims of industrial-country protectionism are also found to be relatively closed to agricultural trade.

### Subject areas and keywords
- Subject: Agricultural commodities, Agricultural exports, Agricultural imports, Agricultural policy, Imports.
- Keywords: country, dummy variable, product, trade, WP.

### Implications for policy and research
- Evidence points to continued prevalence of protectionism and distortive subsidies in developed countries, with implications for trade negotiations and domestic agricultural policy reform.
- Findings suggest attention is also needed on trade openness within certain developing regions that may themselves impede agricultural trade.
- Gravity-model based empirical analysis can inform targeted policy interventions by highlighting deviations from expected bilateral trade patterns after controlling for standard economic, political, and geographic determinants.

*IMF Working Paper — Assessing Protectionism and Subsidies in Agriculture: A Gravity Approach by Claudio A Paiva (Working Paper No. 2005/021).*

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/assessing-protectionism-and-subsidies-in-agriculture-a-gravity-approach-17850_