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What does the United States stand to gain from liberalizing international trade in agriculture? This article estimates potential dollar gains and simulates the relocation of workers out of agriculture and into nonfarm activities. Different nonfarm sectors would expand under three cases of macroeconomic adjustment to the change in farm policies. The benefits of full liberalization would arise largely from the implied reduction in the Federal budget deficit. The greatest benefits would result if in addition to liberalization, macroeconomic policies that stimulate investment or net exports were pursued.

Keywords: liberalization ; nonfarm employment ; computable general equilibrium marketing

Subject(s): Agricultural Finance

Issue Date: 1991

Publication Type: Journal Article

PURL Identifier: Published in: Journal of Agricultural Economics Research, Volume 43, Number 3

Total Pages: 13

Record appears in: United States Department of Agriculture (USDA) > Economic Research Service > Journal of Agricultural Economics Research

Autor: Kilkenny, Maureen


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