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Abstract

This study examines the potential magnitude and distribution of the costs and benefits of allowing developing countries to establish Special Safeguards (SSGs) for staple agricultural commodities. An inter-temporal general equilibrium model used to simulate the static and dynamic effects of SSGs. Our results indicate that developing countries in aggregate lose welfare when SSGs are imposed for staple food and for all agricultural commodities as opposed to agricultural trade liberalization without SSGs. However, the distribution of gains and losses among developing countries is not uniform.

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