Effects of international trade on world agricultural production and productivity: evidence from a panel of 126 countries 1962-2014

Abstract

General Agreement on Tariffs and Trade (GATT) was notable in largely excluding agriculture whereas the World Trade Organization (WTO) brought agriculture into the world trade rules. This article aims to evaluate the impacts of trade on agriculture production and productivity, especially the changes between the GATT and WTO periods. Using a panel of 126 countries from 1962-2014, this article derives not only spillover effects that were overlooked, but also provides more accurate productivity than was estimated with bias in literature for both periods. We find that trade hindered agriculture production and productivity in the GATT period but improved agriculture production and productivity in the WTO period.

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