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

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  • Johan F.M. Swinnen
  • Anneleen Vandeplas
  • Miet Maertens

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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Paper provided by LICOS - Centre for Institutions and Economic Performance, KU 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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Keywords: Agricultural supply chains; growth; development; regional comparisons;

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Cited by:
  1. Minten, Bart & Vandeplas, Anneleen & Swinnen, Johan F.M., 2011. "The broken broker system?: Transacting on agricultural wholesale markets in India (Uttarakhand)," IFPRI discussion papers 1143, International Food Policy Research Institute (IFPRI).
  2. Tao Xiang & Jikun Huang & d’Artis Kancs & Scott Rozelle & Jo Swinnen, 2010. "Food Standards and Welfare: A General Equilibrium Model with Market Imperfections," LICOS Discussion Papers 26310, LICOS - Centre for Institutions and Economic Performance, KU Leuven.

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