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How Distorted Have Agricultural Incentives Become in Europe's Transition Economies?

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  • Kym Anderson
  • Johan Swinnen

Abstract

Over the past two decades, earnings from farming in the former communist countries of Eastern Europe and Central Asia have been altered hugely by government sectoral and trade policy reforms. This paper summarizes evidence on the changing extent of distortions to markets for farm products since the transition away from planned prices began. In particular, it examines the extent to which, following initial shocks, there has been a gradual improvement in farmer incentives. This new evidence is not inconsistent with the past pattern of earlier-developing countries, but the speed of assistance increase is relatively rapid and is linked with actual or desired accession to the European Union. The final section focuses on future prospects, particularly what might be done to prevent agricultural protection levels from becoming excessive.

Suggested Citation

  • Kym Anderson & Johan Swinnen, 2010. "How Distorted Have Agricultural Incentives Become in Europe's Transition Economies?," Eastern European Economics, Taylor & Francis Journals, vol. 48(1), pages 79-109, January.
    • Handle: RePEc:mes:eaeuec:v:48:y:2010:i:1:p:79-109
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    References listed on IDEAS

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    1. World Bank, 2007. "World Development Indicators 2007," World Bank Publications - Books, The World Bank Group, number 8150.
    2. De Gorter, Harry & Swinnen, Johan, 2002. "Political economy of agricultural policy," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 36, pages 1893-1943, Elsevier.
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    Cited by:

    1. Kym Anderson & Gordon Rausser & Johan Swinnen, 2013. "Political Economy of Public Policies: Insights from Distortions to Agricultural and Food Markets," Journal of Economic Literature, American Economic Association, vol. 51(2), pages 423-477, June.
    2. Mugurel Ionel JITEA & Diana Elena DUMITRAȘ & Vasile Alexandru SIMU, 2015. "An ex-ante impact assessment of the Common Agricultural Policy reform in the North-Western Romania," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 61(2), pages 88-103.
    3. repec:lic:licosd:32312 is not listed on IDEAS
    4. You-hua Chen & Zhuang Zhang & Ashok K. Mishra, 2023. "A flexible and efficient hybrid agricultural subsidy design for promoting food security and safety," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-8, December.
    5. You-Hua CHEN & Jun-Yi WAN & Chan WANG, 2015. "Agricultural subsidy with capacity constraints and demand elasticity," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 61(1), pages 39-49.
    6. Kym Anderson, 2016. "Agricultural Trade, Policy Reforms, and Global Food Security," Palgrave Studies in Agricultural Economics and Food Policy, Palgrave Macmillan, number 978-1-137-46925-0.
    7. Chen, You-hua & Chen, Mei-xia & Mishra, Ashok K., 2020. "Subsidies under uncertainty: Modeling of input- and output-oriented policies," Economic Modelling, Elsevier, vol. 85(C), pages 39-56.

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    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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