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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.

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Bibliographic Info

Article provided by Foundation for the European Review of Agricultural Economics in its journal European Review of Agricultural Economics.

Volume (Year): 25 (1998)
Issue (Month): 4 ()
Pages: 463-87

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Handle: RePEc:oup:erevae:v:25:y:1998:i:4:p:463-87

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Cited by:
  1. 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.
  2. 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.
  3. Gawande, Kishore, 2005. "The structure of lobbying and protection in U.S. agriculture," Policy Research Working Paper Series 3722, The World Bank.
  4. Dutt, Pushan & Mitra, Devashish, 2009. "Explaining Agricultural Distortion Patterns : The Roles of Ideology, Inequality, Lobbying and Public Finance," Agricultural Distortions Working Paper 50299, World Bank.
  5. Gawande, Kishore & Hoekman, Bernard, 2006. "Lobbying and agricultural trade policy in the United States," Policy Research Working Paper Series 3819, The World Bank.
  6. Färber, Gisela (ed.), 2005. "Das föderative System in Deutschland: Bestandsaufnahme, Reformbedarf und Handlungsempfehlungen aus raumwissenschaftlicher Sicht," Forschungs- und Sitzungsberichte der ARL, Akademie für Raumforschung und Landesplanung (ARL) - Leibniz-Forum für Raumwissenschaften, volume 127, number 224, November.
  7. Swinnen, Johan F.M., 2009. "Agricultural Protection Growth in Europe, 1870-1969," Agricultural Distortions Working Paper 50296, World Bank.
  8. 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.
  9. Kreins, Peter & Gömann, Horst & Witzke, Peter, 2005. "Erwartbare Konsequenzen einer Dezentralisierung im Bereich der Agrarpolitik," Forschungs- und Sitzungsberichte der ARL: Aufsätze, in: Das föderative System in Deutschland: Bestandsaufnahme, Reformbedarf und Handlungsempfehlungen aus raumwissenschaftlicher Sicht, pages 313-334 Akademie für Raumforschung und Landesplanung (ARL) - Leibniz-Forum für Raumwissenschaften.
  10. Swinnen, Johan & Knops, Louise & Van Herck, Kristine, 2013. "Food policy volatility and EU policies," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  11. Jin Inhwan, 2008. "Determinants of Agricultural Protection in Industrial Countries: An Empirical Investigation," Economics Bulletin, AccessEcon, vol. 17(1), pages 1-11.
  12. repec:ebl:ecbull:v:17:y:2008:i:1:p:1-11 is not listed on IDEAS

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