The political economy of agricultural liberalization in Central and Eastern Europe: An empirical analysis

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Abstract

We examine the effect of upcoming elections and government ideology on agricultural liberalization in Central and Eastern Europe countries in the post-communist period. Our results suggest first that prices and markets liberalization and land market privatization are manipulated in pre-election periods to secure re-election by favouring farmers. Second, we find no evidence that reforms in the agro-process industry, rural finance or institutional environment are affected by upcoming elections. Third, we demonstrate that right-wing governments protect the interest of the agricultural sector more than left-wing governments by affecting the speed of price and market reforms, privatization in the agro-processing industry and land market privatization. Finally, we demonstrate that liberalization the agricultural sector is partly retarded by nationalistic governments. (c) 2014 Elsevier Ltd. All rights reserved.
Original languageEnglish
Pages (from-to)332-346
JournalFood Policy
Volume49
DOIs
Publication statusPublished - 2014

Keywords

  • food policies
  • initial conditions
  • budget cycles
  • panel-data
  • reform
  • transition
  • protection
  • countries
  • insights
  • institutions

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