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Agricultural Protection in Developing Countries

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  • Fulginiti, Lilyan E.
  • Shogren, Jason F.

Abstract

Countries often have a Jekyll-Hyde relationship with their agricultural sector - policymakers both tax and subsidize agriculture. In the early stages of a country's development, policy makers exploit agriculture through export taxes and overvalued exchange rates. In contrast, agricultural policy in advanced industrial countries has strongly protected domestic producers by means of trade restrictions, direct price or income supports, and public investment. This paper explores why farmers are taxed in poor countries and subsidized in rich countries. Using the economic theory of contests to come to an understanding of the incentives for agricultural protectionism, we first sketch a framework for an excludable and rivalrous rent. We then apply this framework to agricultural protectionism in developing countries.
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Suggested Citation

  • Fulginiti, Lilyan E. & Shogren, Jason F., 1992. "Agricultural Protection in Developing Countries," Staff General Research Papers Archive 779, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:779
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    Cited by:

    1. Barrett, Christopher B., 1999. "The microeconomics of the developmental paradox: on the political economy of food price policy," Agricultural Economics, Blackwell, vol. 20(2), pages 159-172, March.
    2. 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.
    3. Sébastien Mary, 2019. "Hungry for free trade? Food trade and extreme hunger in developing countries," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 11(2), pages 461-477, April.
    4. Eriksson, Clas, 2011. "Home bias in preferences and the political economics of agricultural protection," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 92(1).
    5. 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, January.
    6. Karagiannis, Giannis & Tzouvelekas, Vangelis, 2001. "Self-Dual Stochastic Production Frontiers and Decomposition of Output Growth: The Case of Olive-Growing Farms in Greece," Agricultural and Resource Economics Review, Cambridge University Press, vol. 30(2), pages 168-178, October.
    7. Clas Eriksson, 2011. "Home bias in preferences and the political economics of agricultural protection," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 92(1), pages 5-23.
    8. Biswas, Amit K. & Marjit, Sugata, 2003. "Interpreting Trade Statistics in Regulated and Deregulated Markets - An Analytical Exercise Based on Indian Experience," Conference papers 331070, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    9. Wenshou Yan & Kaixing Huang, 2018. "Determinants of agricultural protection in China and the rest of the world," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 32(2), pages 64-75, November.
    10. Florent Venayre, 2012. "Protection du marché agricole et qualité sanitaire en Polynésie française," Post-Print halshs-00785749, HAL.

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