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Political Economy Determinants of Agricultural Protection Levels in EU Member States: An Empirical Investigation

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  • Olper, Alessandro

Abstract

This study uses a political economy approach to explain differences in agricultural protection levels among EU countries during the period 1975-1989. Panel data regression analysis is conducted for two different measures of agricultural protection. The paper shows that agricultural support increases when market conditions are against agriculture (countercyclicity), and in countries with a comparative disadvantage in agriculture. The number of farms strongly conditions the protection patterns across countries, showing that small countries and small agricultural sectors are more likely to gain CAP transfers. The results support the hypothesis that national agricultural policies have been used by member states as an additional compensatory mechanism to the CAP. Finally, the use of a protection index that removes the assumption of zero substitutability among inputs and outputs increases the explanatory power of the model. Copyright 1998 by Oxford University Press.

Suggested Citation

  • Olper, Alessandro, 1998. "Political Economy Determinants of Agricultural Protection Levels in EU Member States: An Empirical Investigation," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 25(4), pages 463-487.
    • Handle: RePEc:oup:erevae:v:25:y:1998:i:4:p:463-87
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    Cited by:

    1. Abdullah Mamun, 2024. "Impact of farm subsidies on global agricultural productivity," Agricultural Economics, International Association of Agricultural Economists, vol. 55(2), pages 346-364, March.
    2. Carl GAIGNÉ & Cathie LAROCHE DUPRAZ & Alan MATTHEWS, 2015. "Thirty years of European research on international trade in food and agricultural products," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 96(1), pages 91-130.
    3. Gawande, Kishore & Hoekman, Bernard, 2006. "Lobbying and Agricultural Trade Policy in the United States," International Organization, Cambridge University Press, vol. 60(3), pages 527-561, July.
    4. Johan F. M. Swinnen & Louise Knops & Kristine van Herck, 2013. "Food Price Volatility and EU Policies," WIDER Working Paper Series wp-2013-032, World Institute for Development Economic Research (UNU-WIDER).
    5. Knops, Louise & van Herck, Kristine & Swinnen, Johan F. M., 2013. "Food Price Volatility and EU Policies," WIDER Working Paper Series 032, World Institute for Development Economic Research (UNU-WIDER).
    6. Färber, Gisela (ed.), 2005. "Das föderative System in Deutschland: Bestandsaufnahme, Reformbedarf und Handlungsempfehlungen aus raumwissenschaftlicher Sicht," Forschungs- und Sitzungsberichte der ARL, ARL – Akademie für Raumentwicklung in der Leibniz-Gemeinschaft, volume 127, number 224.
    7. Alessandro Olper, 2001. "Determinants of Agricultural Protection: The Role of Democracy and Institutional Setting Alessandro Olper," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(2), pages 75-92, May.
    8. Garrone, Maria & Emmers, Dorien & Olper, Alessandro & Swinnen, Johan, 2019. "Jobs and agricultural policy: Impact of the common agricultural policy on EU agricultural employment," Food Policy, Elsevier, vol. 87(C), pages 1-1.
    9. Dutt, Pushan & Mitra, Devashish, 2009. "Explaining Agricultural Distortion Patterns : The Roles of Ideology, Inequality, Lobbying and Public Finance," Agricultural Distortions Working Paper Series 50299, World Bank.
    10. Alessandro Olper & Daniele Valenti & Valentina Raimondi & Daniele Curzi, 2023. "The EU enlargements treatment effect on agricultural policy," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(2), pages 1134-1153, June.
    11. María Angélica Arbeláez & Sebastián Higuera & Roberto Steiner & Sandra Zuluaga, 2018. "Protecting “sensitive” agricultural products in Colombia : a political economy approach," Coyuntura Económica, Fedesarrollo, vol. 48(1-2), pages 153-205, December.
    12. Gawande, Kishore, 2005. "The structure of lobbying and protection in U.S. agriculture," Policy Research Working Paper Series 3722, The World Bank.
    13. Swinnen, Johan F.M., 0. "The Political Economy of the Most Radical Reform of the Common Agricultural Policy," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 59.
    14. repec:ebl:ecbull:v:17:y:2008:i:1:p:1-11 is not listed on IDEAS
    15. Arovuori, Kyösti, 2017. "Jak reformy WPR przyczyniły się do zmian strukturalnych w rolnictwie?," Village and Agriculture (Wieś i Rolnictwo), Polish Academy of Sciences (IRWiR PAN), Institute of Rural and Agricultural Development, vol. 3(176).
    16. Swinnen, Johan F.M., 2008. "The Political Economy of Agricultural Protection: Europe in the 19th and 20th Century," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43859, European Association of Agricultural Economists.
    17. Swinnen, Johan F.M., 2010. "The Political Economy of the Most Radical Reform of the Common Agricultural Policy," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 59(Supplemen), pages 1-12, December.
    18. Jin Inhwan, 2008. "Determinants of Agricultural Protection in Industrial Countries: An Empirical Investigation," Economics Bulletin, AccessEcon, vol. 17(1), pages 1-11.
    19. Kreins, Peter & Gömann, Horst & Witzke, Peter, 2005. "Erwartbare Konsequenzen einer Dezentralisierung im Bereich der Agrarpolitik," Forschungs- und Sitzungsberichte der ARL: Aufsätze, in: Färber, Gisela (ed.), Das föderative System in Deutschland: Bestandsaufnahme, Reformbedarf und Handlungsempfehlungen aus raumwissenschaftlicher Sicht, volume 127, pages 313-334, ARL – Akademie für Raumentwicklung in der Leibniz-Gemeinschaft.
    20. Johan F. M. Swinnen, 2009. "The Growth of Agricultural Protection in Europe in the 19th and 20th Centuries," The World Economy, Wiley Blackwell, vol. 32(11), pages 1499-1537, November.
    21. Wandel Jürgen, 2023. "Can the war in Ukraine thwart the green agricultural transformation in the EU? Political economy considerations regarding the case of Germany," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 59(2), pages 79-100, June.
    22. Johan F.M. Swinnen, 2008. "The Political Economy of the 2003 Reform of the Common Agricultural Policy," LICOS Discussion Papers 21508, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    23. Czyżewski, Bazyli, 2016. "Political Rents of European Farmers in the Sustainable Development Paradigm. International, national and regional perspective," MPRA Paper 74253, University Library of Munich, Germany.
    24. Swinnen, Johan F.M., 2009. "Agricultural Protection Growth in Europe, 1870-1969," Agricultural Distortions Working Paper Series 50296, World Bank.

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