Possible effects of set-aside removal and severe draught in the EU and Turkey
New Medit, vol 8, n. 2, (June 2009), pp. 46-55
Jel classification: Q180, Q120
This paper is aimed at analyzing the impacts of policy measures taken in the EU and in Turkey to cope with the decrease in cereals and oilseeds supply in both areas. Changes in the supply amount were found to have negligible effects on world prices and the removal of obligatory set-aside obviously seemed to be a partial solution for the problem of decreasing stocks and rising domestic prices. It the trade liberalization and how it was implemented were the main factors significantly affecting quantities and prices. In addition, the EU liberalization may substantially affect Turkey.
set-aside policy, draught, partial equilibrium trade model