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Domestic and Trade Policy for Central and East European Agriculture

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  • Karp, Larry
  • Stefanou, Spiro

Abstract

After a brief period of liberal agricultural policies, Central and East European (CEE) countries have begun to rely increasingly on price subsidies and trade restrictions. We outline the situation of CEE agriculture and describe current policies. Scarce government funds could be better used to support agriculture by providing partial loan guarantees, thus reducing private collateral requirements and making credit more widely available. This policy would provide income and not merely price insurance. In addition, it avoids the commodity bias associated with price policies. Others have argued that traditional price and trade policies should be used to support CEE agriculture, citing the example of OECD nations, and in particular the goal of joining the EC. We summarize and criticize these arguments.

Suggested Citation

  • Karp, Larry & Stefanou, Spiro, 1993. "Domestic and Trade Policy for Central and East European Agriculture," CEPR Discussion Papers 814, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:814
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    References listed on IDEAS

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    1. Dani Rodrik, 1994. "Foreign Trade in Eastern Europe's Transition: Early Results," NBER Chapters,in: The Transition in Eastern Europe, Volume 2: Restructuring, pages 319-356 National Bureau of Economic Research, Inc.
    2. Wang, Zhen Kun & Winters, L. Alan, 1991. "The Trading Potential of Eastern Europe," CEPR Discussion Papers 610, C.E.P.R. Discussion Papers.
    3. Anderson, Ronald W., 1992. "Market Stabilization and the Reform of the Common Agricultural Policy," CEPR Discussion Papers 740, C.E.P.R. Discussion Papers.
    4. Anderson, Ronald W., 1992. "Market Stabilization and the Reform of the Common Agricultural Policy," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 1992015, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
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    Citations

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    Cited by:

    1. Bojnec, Stefan & Swinnen, Johan F. M., 1997. "The pattern of agricultural price distortions in Central and Eastern Europe," Food Policy, Elsevier, vol. 22(4), pages 289-306, August.
    2. Rausser, Gordon C. & Small, Arthur A., 1997. "Alternative trade and support strategies for CAP integration," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt6bm4q0xt, Department of Agricultural & Resource Economics, UC Berkeley.
    3. Hausner, Ulrich & Cichon, Janusz & von Witzke, Harald, 1993. "Economic Reforms In Poland: Implications For Agriculture," Working Papers 14408, University of Minnesota, Center for International Food and Agricultural Policy.
    4. Bartosova, Dasa & Bartova, Lubica & Fidrmuc, Jarko, 2008. "EU Enlargement Implications on the New Member States Agri-food Trade," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44122, European Association of Agricultural Economists.
    5. Karp, Larry, 1995. "The Direction and Timing of Agricultural Trade Refonn in Central and East Europe," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt9z61f67x, Department of Agricultural & Resource Economics, UC Berkeley.
    6. Kiss, Judit, 1997. "Agricultural Trade Between Central Europe and the EU," 1997: Economic Transition in Central and East Europe, and the Former Soviet Union: Implications ... Symposium, June 12-14, 1997, Berlin, Germany 50841, International Agricultural Trade Research Consortium.

    More about this item

    Keywords

    Agricultural Policy; Central and Eastern Europe; Collateral Subsidies; Economic Transition;

    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

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