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How Distorted Have Agricultural Incentives Become in EuropeÂ’s Transition Economies?

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Author Info

  • Kym Anderson

    ()
    (School of Economics, University of Adelaide)

  • Johan Swinnen

    ()
    (Department of Economics, Katholieke Universiteit, Leuven, Belgium)

Abstract

Over the past two decades, earnings from farming in the former communist countries of Eastern Europe and Central Asia have been altered hugely by government sectoral and trade policy reforms. This paper summarizes evidence on the changing extent of distortions to markets for farm products since the transition away from planned prices began. In particular, it examines the extent to which, following the initial shocks, there has been a gradual improvement in farmer incentives. This new evidence is not inconsistent with that past pattern of earlier-developing countries, but the speed of assistance increase is relatively rapid and is linked with actual or desired accession to the European Union. The final section focuses on future prospects, and in particular on what might be done to avoid agricultural protection levels becoming excessive.

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File URL: http://www.adelaide.edu.au/cies/papers/Discussion_Paper0903.pdf
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Bibliographic Info

Paper provided by University of Adelaide, Centre for International Economic Studies in its series Centre for International Economic Studies Working Papers with number 2009-03.

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Length: 46 pages
Date of creation: Dec 2009
Date of revision:
Handle: RePEc:adl:cieswp:2009-03

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Keywords: Distorted farmer and consumer incentives; agricultural price and trade policy reforms; agricultural development; European transition economies;

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  1. De Gorter, Harry & Swinnen, Johan, 2002. "Political economy of agricultural policy," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 36, pages 1893-1943 Elsevier.
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Cited by:
  1. Kym Anderson & Gordon Rausser & Johan Swinnen, 2013. "Political Economy of Public Policies: Insights from Distortions to Agricultural and Food Markets," Journal of Economic Literature, American Economic Association, vol. 51(2), pages 423-77, June.

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