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The political economy of public research investment and commodity policies in agriculture: an empirical study

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  • Swinnen, Johan F. M.
  • Gorter, Harry de
  • Rausser, Gordon C.
  • Banerjee, Anurag N.

Abstract

The paper tests a political economy theory of simultaneous government decision-making on income redistribution through commodity policies and on public research investment in agriculture. We use data from 37 countries on agricultural protection and public agricultural research expenditures (PARI). The empirical results are consistent with the political economy hypotheses. The analysis suggest that structural changes in the economy have important effects on the political incentives for governments not only to subsidize or tax farmers, but also to invest in public agricultural research. Furthermore, the analysis supports the hypotheses that the impact of such structural changes on government decision-making on PARl is non-linear and conditional on other factors. Regarding the impact of political institutions, the results suggest that more democracy neither leads to more distortionary transfers (agricultural protection), nor to lower investment in public goods (PARI). © 2000 Elsevier Science B.V. All rights reserved.

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Bibliographic Info

Article provided by Blackwell in its journal Agricultural Economics.

Volume (Year): 22 (2000)
Issue (Month): 2 (March)
Pages: 111-122

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Handle: RePEc:eee:agecon:v:22:y:2000:i:2:p:111-122

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  1. Scully, Gerald W, 1988. "The Institutional Framework and Economic Development," Journal of Political Economy, University of Chicago Press, vol. 96(3), pages 652-62, June.
  2. John C. Beghin & William E. Foster & Mylene Kherallah, 1996. "Institutions And Market Distortions: International Evidence For Tobacco," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1-4), pages 355-365.
  3. Gordon C. Rausser, 1992. "Predatory versus Productive Government: The Case of U.S. Agricultural Policies," Journal of Economic Perspectives, American Economic Association, vol. 6(3), pages 133-157, Summer.
  4. Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
  5. Alston, Julian M. & Pardey, Philip G. & Roseboom, Johannes, 1998. "Financing agricultural research: International investment patterns and policy perspectives," World Development, Elsevier, vol. 26(6), pages 1057-1071, June.
  6. Gorter, H. de & Nielson, D. & Rausser, Gordon C., 1992. "Productive and Predatory Public Policies," Staff General Research Papers 732, Iowa State University, Department of Economics.
  7. William E. Foster & Gordon C. Rausser, 1992. "Price-Distorting Compensation Serving the Consumer and Taxpayer Interest," Food and Agricultural Policy Research Institute (FAPRI) Publications 90-gatt15, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
  8. Beghin, John C. & Kherallah, Mylene, 1994. "Political Institutions and International Patterns of Agricultural Protection," Staff General Research Papers 1602, Iowa State University, Department of Economics.
  9. Swinnen, Johan F.M. & de Gorter, Harry, 1995. "Endogenous Commodity Policies and the Social Benefits from Public Research Expenditures," Working Papers 128002, Cornell University, Department of Applied Economics and Management.
  10. Gardner, Bruce L, 1987. "Causes of U.S. Farm Commodity Programs," Journal of Political Economy, University of Chicago Press, vol. 95(2), pages 290-310, April.
  11. Anderson, Jock R. & Pardey, Philip G. & Roseboom, Johannes, 1994. "Sustaining growth in agriculture: a quantitative review of agricultural research investments," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 10(2), April.
  12. Johan F. M. Swinnen & Harry Gorter, 1993. "Why Small Groups And Low Income Sectors Obtain Subsidies: The "Altruistic" Side Of A "Self-Interested" Government," Economics and Politics, Wiley Blackwell, vol. 5(3), pages 285-293, November.
  13. Murphy, John A. & Furtan, W. Hartley & Schmitz, Andrew, 1993. "The gains from agricultural research under distorted trade," Journal of Public Economics, Elsevier, vol. 51(2), pages 161-172, June.
  14. Anderson, Jock R. & Pardey, Philip G. & Roseboom, Johannes, 1994. "Sustaining growth in agriculture: A quantitative review of agricultural research investments," Agricultural Economics, Blackwell, vol. 10(2), pages 107-123, April.
  15. Krueger, Anne O & Schiff, Maurice & Valdes, Alberto, 1988. "Agricultural Incentives in Developing Countries: Measuring the Effect of Sectoral and Economywide Policies," World Bank Economic Review, World Bank Group, vol. 2(3), pages 255-71, September.
  16. Huffman, Wallace E. & Evenson, Robert E., 2006. "Science for Agriculture: A Long Term Perspective," Staff General Research Papers 12362, Iowa State University, Department of Economics.
  17. Adam Przeworski & Fernando Limongi, 1993. "Political Regimes and Economic Growth," Journal of Economic Perspectives, American Economic Association, vol. 7(3), pages 51-69, Summer.
  18. John McMillan & Gordon C. Rausser & Stanley R. Johnson, 1993. "Freedoms and Economic Growth: Transitional and Permanent Components," Center for Agricultural and Rural Development (CARD) Publications 93-wp115, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  19. Huffman, Wallace & Evenson, Robert E., 1992. "Contributions of Public and Private Science and Technology to U.S. Agricultural Productivity," Staff General Research Papers 10990, Iowa State University, Department of Economics.
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Citations

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Cited by:
  1. Olper, Alessandro & Raimondi, Valentina, 2009. "Constitutional Rules and Agricultural Policy Outcomes," Agricultural Distortions Working Paper 50304, World Bank.
  2. Jan Fałkowski & Alessandro Olper, 2012. "Political Competition and Policy Choices: The Evidence From Agricultural Protection," Working Papers 2012-18, Faculty of Economic Sciences, University of Warsaw.
  3. Olper, Alessandro & Raimondi, Valentina, 2013. "Electoral rules, forms of government and redistributive policy: Evidence from agriculture and food policies," Journal of Comparative Economics, Elsevier, vol. 41(1), pages 141-158.
  4. Olper, Alessandro & Falkowski, Jan & Swinnen, Johan F.M., 2009. "Democracy and Agricultural Protection: Parametric and Semi-parametric Matching Estimates," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49313, Agricultural and Applied Economics Association.
  5. Alessandro Olper & Jan Falkowski & Johan Swinnen, 2009. "Political Reforms and Public Policies: Evidence from Agricultural Protection," LICOS Discussion Papers 25109, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  6. Roberto ESPOSTI, 2000. "Public R&D Design and Technological Spill-Ins. A Dynamic Model," Working Papers 136, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  7. Kym Anderson & Gordon Rausser & Johan Swinnen, 2012. "Political Economy of Public Policies: Insights from Distortions to Agricultural and Food Markets," LICOS Discussion Papers 32312, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  8. Olper, Alessandro, 2007. "Land inequality, government ideology and agricultural protection," Food Policy, Elsevier, vol. 32(1), pages 67-83, February.
  9. Steven Nafziger, 2013. "Russian Peasants and Politicians: The Political Economy of Local Agricultural Support in Nizhnii Novgorod Province, 1864-1914," Department of Economics Working Papers 2013-15, Department of Economics, Williams College.
  10. repec:ebl:ecbull:v:17:y:2008:i:1:p:1-11 is not listed on IDEAS
  11. Mogues, Tewodaj, 2012. "What determines public expenditure allocations?: A review of theories, and implications for agricultural public investments," IFPRI discussion papers 1216, International Food Policy Research Institute (IFPRI).
  12. Swinnen, Johan F. M. & Banerjee, Anurag N. & Gorter, Harry de, 2001. "Economic development, institutional change, and the political economy of agricultural protection: An econometric study of Belgium since the 19th century," Agricultural Economics, Blackwell, vol. 26(1), pages 25-43, October.
  13. Abmann, Christian & Henning, Christian H.C.A. & Krampe, Eva, 2012. "Constitutional Rules, Informal Institutions and Agricultural Protection in Developing and Industrial Countries: Theory and Empirical Evidence," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124885, Agricultural and Applied Economics Association.

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