Consumer's Welfare Effects of Chicken Trade Liberalization in Taiwan

In applied demand analyses, most studies are focused on estimating a demand structure to reflect the relationships of quantity demanded, prices, and income, but leaving the issue of foreign trade implications virtually unexplored. Because agricultural trade liberalization has received much attention in national and international forums particularly since the beginning of the• Uruguay Round of Multilateral Trade Negotiations in 1986, some analyses regarding the impacts of trade liberalization on consumer's welfare are important. The analyses are useful to importing countries for justifying their liberalization measure on behalf of consumers and to exporting countries for assessing the potential of expanding foreign trade. This study uses Taiwan's chicken industry as an example to illustrate the measurement of the effects of trade liberalization on the consumer's welfare.