Impact of global trade agreements on agricultural producer prices in Asian countries

Abstract

Following global trade agreements, Asian countries have been highly aggressive in implementing free trade. These conditions will impact all sectors, including agriculture. This study aims to examine the impact of the General Agreement on Tariffs and Trade (GATT), World Trade Organization membership (WTO), and the Doha Round implementations on agricultural producer prices in Asian countries (PPI). The study was conducted using secondary data from 1991 to 2020. The data for 28 Asian countries were analyzed using the first difference General Method of Moments (GMM). The results show that implementing the GATT raises the PPI, but implementing the WTO has the reverse impact. PPI is unaffected by the Doha Round. Inflation, exchange rate, value-added, human capital, and land area equipped for irrigation are all positive contributors to PPI. Several recommendations are made to increase PPI in Asian countries: increasing commitment to agricultural fair trade, increasing agricultural value-added, improving educational opportunities for agricultural business players, and prioritizing agricultural infrastructure investment.

Keywords

• Free trade
• Producer prices
• Economic
• Social
• Infrastructure