A Multicommodity Analysis of Trade Policy Effects: The Case of Nicaraguan Agriculture

Agricultural trade policies for a small country are analyzed, using a simple, multicommodity, quadratic programming, agricultural sector model. The policy conditions simulated include (a) quantitative trade restrictions given an uncertain world market, (b) export taxation, and (c) import subsidies. The multicommodity, sectoral-wide coverage permits analysis of the factor-product market linkages and enables identification of the distributional consequences.