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Political Economy Determinants of Agricultural Protection Levels in EU Member States: An Empirical Investigation

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  • Olper, Alessandro

Abstract

This study uses a political economy approach to explain differences in agricultural protection levels among EU countries during the period 1975-1989. Panel data regression analysis is conducted for two different measures of agricultural protection. The paper shows that agricultural support increases when market conditions are against agriculture (countercyclicity), and in countries with a comparative disadvantage in agriculture. The number of farms strongly conditions the protection patterns across countries, showing that small countries and small agricultural sectors are more likely to gain CAP transfers. The results support the hypothesis that national agricultural policies have been used by member states as an additional compensatory mechanism to the CAP. Finally, the use of a protection index that removes the assumption of zero substitutability among inputs and outputs increases the explanatory power of the model. Copyright 1998 by Oxford University Press.

Suggested Citation

  • Olper, Alessandro, 1998. "Political Economy Determinants of Agricultural Protection Levels in EU Member States: An Empirical Investigation," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 25(4), pages 463-487.
  • Handle: RePEc:oup:erevae:v:25:y:1998:i:4:p:463-87
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    Cited by:

    1. Czyżewski, Bazyli, 2016. "Political Rents of European Farmers in the Sustainable Development Paradigm. International, national and regional perspective," MPRA Paper 74253, University Library of Munich, Germany.
    2. Swinnen, Johan F.M., 0. "The Political Economy of the Most Radical Reform of the Common Agricultural Policy," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 59.
    3. Kreins, Peter & Gömann, Horst & Witzke, Peter, 2005. "Erwartbare Konsequenzen einer Dezentralisierung im Bereich der Agrarpolitik," Forschungs- und Sitzungsberichte der ARL: Aufsätze,in: Das föderative System in Deutschland: Bestandsaufnahme, Reformbedarf und Handlungsempfehlungen aus raumwissenschaftlicher Sicht, pages 313-334 Akademie für Raumforschung und Landesplanung (ARL) - Leibniz-Forum für Raumwissenschaften.
    4. Johan F.M. Swinnen, 2008. "The Political Economy of the 2003 Reform of the Common Agricultural Policy," LICOS Discussion Papers 21508, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    5. Gawande, Kishore & Hoekman, Bernard, 2006. "Lobbying and Agricultural Trade Policy in the United States," International Organization, Cambridge University Press, vol. 60(03), pages 527-561, July.
    6. Jin Inhwan, 2008. "Determinants of Agricultural Protection in Industrial Countries: An Empirical Investigation," Economics Bulletin, AccessEcon, vol. 17(1), pages 1-11.
    7. Gawande, Kishore, 2005. "The structure of lobbying and protection in U.S. agriculture," Policy Research Working Paper Series 3722, The World Bank.
    8. Dutt, Pushan & Mitra, Devashish, 2009. "Explaining Agricultural Distortion Patterns : The Roles of Ideology, Inequality, Lobbying and Public Finance," Agricultural Distortions Working Paper 50299, World Bank.
    9. Johan F. M. Swinnen, 2009. "The Growth of Agricultural Protection in Europe in the 19th and 20th Centuries," The World Economy, Wiley Blackwell, vol. 32(11), pages 1499-1537, November.
    10. Swinnen, Johan F.M., 2008. "The Political Economy of Agricultural Protection: Europe in the 19th and 20th Century," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43859, European Association of Agricultural Economists.
    11. Färber, Gisela (ed.), 2005. "Das föderative System in Deutschland: Bestandsaufnahme, Reformbedarf und Handlungsempfehlungen aus raumwissenschaftlicher Sicht," Forschungs- und Sitzungsberichte der ARL, Akademie für Raumforschung und Landesplanung (ARL) - Leibniz-Forum für Raumwissenschaften, volume 127, number 224.
    12. Alessandro Olper, 2001. "Determinants of Agricultural Protection: The Role of Democracy and Institutional Setting Alessandro Olper," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(2), pages 75-92.
    13. Knops, Louise & van Herck, Kristine & Swinnen, Johan F. M., 2013. "Food Price Volatility and EU Policies," WIDER Working Paper Series 032, World Institute for Development Economic Research (UNU-WIDER).
    14. repec:ebl:ecbull:v:17:y:2008:i:1:p:1-11 is not listed on IDEAS
    15. Swinnen, Johan F.M., 2009. "Agricultural Protection Growth in Europe, 1870-1969," Agricultural Distortions Working Paper 50296, World Bank.

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