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The Political Economy of Agricultural Market Reforms in Developing Countries

Author

Listed:
  • Giuliano Paola

    (UCLA)

  • Scalise Diego

    (Europe Economics)

Abstract

We study the determinants of agricultural market reforms in developing countries. What prompted the governments in these countries to abruptly begin deregulating their agricultural markets in the late 1980's? We answer this question by constructing a completely new dataset based on agricultural market regulations in 88 developing countries from 1960 to 2003. Our results suggest that the sudden and strong decline in the international price of agricultural commodities played a crucial role in destabilizing the financial equilibrium of marketing boards. In addition, changes in the rural representation in the political arena and government ideology also played significant roles in breaking up the status quo.

Suggested Citation

  • Giuliano Paola & Scalise Diego, 2009. "The Political Economy of Agricultural Market Reforms in Developing Countries," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 9(1), pages 1-27, August.
    • Handle: RePEc:bpj:bejeap:v:9:y:2009:i:1:n:33
    DOI: 10.2202/1935-1682.2023
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    Cited by:

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    2. Filippo Belloc & Antonio Nicita, 2010. "Partisan Liberalizations. A New Puzzle from OECD Network Industries?," Department of Economics University of Siena 588, Department of Economics, University of Siena.
    3. Phiri, Horace & Edriss, Abdi Khalil, 2013. "Political economy of agricultural producer support in Malawi: An econometric test of determinants of producer protection in the maize sector," MaSSP working papers 2, International Food Policy Research Institute (IFPRI).
    4. Gunes Gokmen & Tommaso Nannicini & Massimiliano Gaetano Onorato & Chris Papageorgiou, 2021. "Policies in Hard Times: Assessing the Impact of Financial Crises on Structural Reforms," The Economic Journal, Royal Economic Society, vol. 131(638), pages 2529-2552.
    5. Belloc, Filippo & Nicita, Antonio & Sepe, Simone M., 2014. "Disentangling liberalization and privatization policies: Is there a political trade-off?," Journal of Comparative Economics, Elsevier, vol. 42(4), pages 1033-1051.
    6. Pagare, Dewang & Biswas, Indranil & Agrahari, Amit & Ghosh, Sriparna, 2023. "A small farmer’s market choice in the presence of multiple markets: The Indian case," European Journal of Operational Research, Elsevier, vol. 311(2), pages 739-753.
    7. Aashish Argade & Laha, A. K., 2018. "Marketplace Options in an Emerging Economy Local Food Marketing System- Producers’ Choices, Choice Determinants and Requirements," IIMA Working Papers WP 2018-01-01, Indian Institute of Management Ahmedabad, Research and Publication Department.
    8. Filippo Belloc & Antonio Nicita, 2011. "The political determinants of liberalization: do ideological cleavages still matter?," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 58(2), pages 121-145, June.

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    deregulation; agricultural markets;

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