Political Economy of Agricultural Trade Interventions in Africa

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Political Economy of Agricultural Trade Interventions in Africa

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Title: Political Economy of Agricultural Trade Interventions in Africa
Author: Bates, Robert H.; Block, Steven

Note: Order does not necessarily reflect citation order of authors.

Citation: Bates, Robert, and Steven Block. Political economy of agricultural trade interventions in Africa. 2009. Agricultural Distortions Working Paper 87.
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Abstract: This paper uses new data on agricultural policy interventions to examine the political economy of agricultural trade policies in Sub-Saharan Africa. Historically, African governments have discriminated against agricultural producers in general (relative to producers in non-agricultural sectors), and against producers of export agriculture in particular. While more moderate in recent years, these patterns of discrimination persist. They do so even though farmers comprise a political majority. Rather than claiming the existence of a single best approach to the analysis of policy choice, we explore the impact of three factors: institutions, regional inequality, and tax revenue generation. We find that agricultural taxation increases with the rural population share in the absence of electoral party competition; yet, the existence of party competition turns the lobbying disadvantage of the rural majority into political advantage. We also find that privileged cash crop regions are particular targets for redistributive taxation, unless the country's president comes from that region. In addition, governments of resource-rich countries, while continuing to tax export producers, reduce their taxation of food consumers.
Published Version: http://ideas.repec.org/p/ags/wbadwp/50302.html
Terms of Use: This article is made available under the terms and conditions applicable to Open Access Policy Articles, as set forth at http://nrs.harvard.edu/urn-3:HUL.InstRepos:dash.current.terms-of-use#OAP
Citable link to this page: http://nrs.harvard.edu/urn-3:HUL.InstRepos:3322469
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