World Trade and wheat self-sufficiency in the world

Document Type : Research Paper

Authors

1 Azad university, central barnch

2 Azad university, central branch

3 ُAzad university, central branch

Abstract

The agricultural sector is one of the significant sectors of economy; therefore self-sufficiency in this sector is essential. This paper aims at the discussion on impacts of establishing WTO in 1995 on wheat production self-sufficiency of five continents. Since the quantitative analysis of the optimal level of agricultural factors is the main tool to achieve self-sufficiency, comparative study of world wheat production factors before and after the establishment of the WTO is another purpose of this study. To capture the effects of inputs, two separate Cobb-Douglas wheat production functions, by using panel data-set over 1981-1995 and 1996-2010, were applied. The results of study indicate that over a 30-year period; from 1980 to 2010; the trend of wheat self-sufficiency in Africa, America and Asia were stable. However, the establishment of the WTO led to a slight increase on Europe and fluctuation decline on Oceania wheat self-sufficiency. Besides, it was found that consumption of seed WTO and fertilizer after WTO, had the greatest impact on wheat yield. The contribution of labor force had reduced and productivity of this input had increased after world trade.

Keywords

References

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Iranian Journal of Agricultural Economics and Development Research
Volume 47, Issue 1
April 2016
Pages 93-107

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