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AGRICULTURAL EXPLOITATION AND SUBSIDIZATION: There Is An Explanation

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  • Olson, Mancur

Abstract

Agricultural products are normally underpriced and many types of urban production subsidized in developing countries. In developed countries agriculture normally shares in the system of subsidies, and in developed countries without comparative advantage in agriculture many farm products are overpriced. The explanation for this difference is related to opportunities for collective action. In developing countries, conditions are not favorable to collective action by farmers. In contrast, collective action is easier in developed countries, and protection makes possible large subsidies to agriculture in those countries with relatively little good land in relation to population.

Suggested Citation

  • Olson, Mancur, 1990. "AGRICULTURAL EXPLOITATION AND SUBSIDIZATION: There Is An Explanation," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 5(4), pages 1-4.
    • Handle: RePEc:ags:aaeach:131307
    DOI: 10.22004/ag.econ.131307
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    Citations

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    Cited by:

    1. Mockshell, Jonathan & Birner, Regina, 2015. "Donors and domestic policy makers: Two worlds in agricultural policy-making?," Food Policy, Elsevier, vol. 55(C), pages 1-14.
    2. Schenck, P., 1992. "Bestimmungsgründe der Protektion im Agrarbereich – eine internationale Querschnittsanalyse für Weizen und Kaffee," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 28.
    3. Johan F.M.Swinnen & Alessandro Olper & Thijs Vandemoortele, 2011. "The Political Economy of Policy Instrument Choice: Theory and Evidence from Agricultural Policies," LICOS Discussion Papers 27911, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    4. Goodwin, Harold L., Jr., 1991. "Entrepreneurship, Sanctions, And Labor Contracting: Discussion," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 23(1), pages 1-6, July.
    5. Liu, Shouying & Ma, Sen & Yin, Lijuan & Zhu, Jiong, 2023. "Land titling, human capital misallocation, and agricultural productivity in China," Journal of Development Economics, Elsevier, vol. 165(C).

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    Keywords

    Agricultural Finance; Public Economics;

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