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Sustainability 2017, 9(10), 1838; doi:10.3390/su9101838

Effects of a Tariff Reduction on Grain Self-Sufficiency: Evidence from Country-Level Panel Data

1
Korea Rural Economic Institute, Naju 58217, Korea
2
Department of Food and Resource Economics, Korea University, Seoul 02841, Korea
*
Author to whom correspondence should be addressed.
Received: 11 September 2017 / Revised: 5 October 2017 / Accepted: 7 October 2017 / Published: 12 October 2017
(This article belongs to the Section Economic, Business and Management Aspects of Sustainability)
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Abstract

This paper investigates the effects of a tariff reduction on the grain self-sufficiency and the sustainability of domestic grain production. We develop a theoretical model in which trade, tariff, and supply-demand equations are explicitly included, with the classification of food importing and exporting countries. Estimation results based on panel data for 150 countries over 17 years show that the effects of domestic tariff of food-importing countries on the grain self-sufficiency rate (SSR) are positive. This implies that market expansion through tariff reduction will have a negative effect on the importing country’s food SSR and sustainable domestic supply. Using the estimated coefficients on the empirical equations, we derived the elasticities of grain SSR with respect to the tariff rate of food-importing countries. Those are in the ranges of 0.221–0.387. View Full-Text
Keywords: trade liberalization; tariff reduction; self-sufficiency; system generalized method of moments; sustainable production trade liberalization; tariff reduction; self-sufficiency; system generalized method of moments; sustainable production
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Jeon, Y.; Ahn, B.-I. Effects of a Tariff Reduction on Grain Self-Sufficiency: Evidence from Country-Level Panel Data. Sustainability 2017, 9, 1838.

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