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Liberalization with Endogenous Institutions: A Comparative Analysis of Agricultural Reform in Africa, Asia, and Europe

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Author Info
Johan F.M. Swinnen
Anneleen Vandeplas
Miet Maertens

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Abstract

Thirty years ago, a vast share of the poor and middle income countries were heavily state-controlled. The effects of the liberalizations in the 1980s and 1990s differed strongly between regions in Africa, Asia and Europe. This paper first documents these differences in reform effects in a comparative framework and then develops a model to formally analyze how liberalization affects production and income distribution when institutions that govern production and exchange are also affected. We derive hypotheses on how the endogenous institutional adjustments affect the supply response to the liberalizations. We use these insights to forward a series of explanations on the differences in performance across countries following liberalization.

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File URL: http://www.econ.kuleuven.ac.be/licos/DP/DP2009/DP233.pdf
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Paper provided by LICOS - Centre for Institutions and Economic Performance, K.U.Leuven in its series LICOS Discussion Papers with number 23309.

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Date of creation: 2009
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Handle: RePEc:lic:licosd:23309

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Related research
Keywords: Agricultural supply chains; growth; development; regional comparisons;

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Find related papers by JEL classification:
O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Regional, Urban, and Rural Analyses
O43 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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