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Explaining Agricultural Distortion Patterns : The Roles of Ideology, Inequality, Lobbying and Public Finance AgEcon
Dutt, Pushan; Mitra, Devashish.
In this paper, we examine the political economy drivers of the variation in agricultural protection, both across countries and within countries over time. The paper starts by listing the key insights provided by both the theoretical and empirical literature on the political economy of trade policy formulation. We then set out a basic framework that allows us to put forth various testable hypotheses on the variation and evolution of agricultural protection. We find that both the political ideology of the government and the degree of income inequality are important determinants of agricultural protection. Thus, both the political-support-function approach as well as the median-voter approach can be used in explaining the variation in agricultural protection...
Tipo: Working or Discussion Paper Palavras-chave: Distorted incentives; Agricultural and trade policy reforms; National agricultural development; Agricultural protection; Political economy; Agricultural and Food Policy; International Relations/Trade; F13; F14; Q17; Q18; D72; D78; F11.
Ano: 2009 URL: http://purl.umn.edu/50299
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Do Trade Agreements Reduce the Volatility of Agricultural Distortions? AgEcon
Cadot, Olivier; Olarreaga, Marcelo; Tschopp, Jeanne.
The objective of this paper is to evaluate the extend to which trade agreements affect agricultural trade policy volatility. Using a new panel database compiled as part of the World Bank's Agricultural Distortions research project, we estimate the effect of regionalism (proxied in various ways) on the volatility of price distortions measured by the absolute value of their first differences, averaged, for each country and year, over all agricultural goods. Using an instrumental-variable approach to correct for the endogeneity of regional trade agreements, (RTAs), we find that participation in RTAs has a significantly negative effect on agricultural trade-policy volatility. We find that the WTO's agricultural agreement also contributed to reducing...
Tipo: Working or Discussion Paper Palavras-chave: Distorted incentives; Agricultural and trade policy reforms; National agricultural development; Agricultural protection; Volatility; Credibility; Agricultural and Food Policy; International Relations/Trade; F13; F14; Q17; Q18; F10.
Ano: 2009 URL: http://purl.umn.edu/50303
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