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Political Economy of Agricultural Trade Interventions in Africa

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World Bank (WB)

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, the authors explore the impact of three factors: institutions, regional inequality, and tax revenue-generation. The authors 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. The authors 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.
Type: Working Paper
Publications & Research :: Working Paper
Publications & Research
Link: http://hdl.handle.net/10986/28166
Subject: AGRICULTURAL COMMODITIES
AGRICULTURAL OUTPUT
AGRICULTURAL POLICIES
AGRICULTURAL POLICY
AGRICULTURAL PRODUCERS
AGRICULTURAL PRODUCTION
AGRICULTURAL SECTOR
AGRICULTURAL SECTORS
AGRICULTURE
ARABLE LAND
ARID NORTH
CASH CROP
CASH CROPS
CASSAVA
CITIZENS
COCOA
COCOA INDUSTRY
COFFEE INDUSTRY
COMPETITIVENESS
CONFLICT
CROP PRODUCTION
CULTURAL CHANGE
DEMOCRACY
DISCRIMINATION
DOMESTIC PRICES
ECONOMETRICS
ECONOMIC GROWTH
ECONOMIC PERFORMANCE
EXPORTS
FARM HOUSEHOLDS
FARMERS
FOOD CONSUMERS
FOOD CROP
FOOD CROPS
FOOD PRICES
FOOD SECURITY
FOODCROPS
GDP
GDP PER CAPITA
GLOBAL MARKETS
GOVERNMENT POLICIES
GROSS NATIONAL INCOME
INCOME REDISTRIBUTION
LABOR FORCE
LEVEL OF DEVELOPMENT
MAIZE
NATIONAL GOVERNMENT
NATIONAL POPULATION
NATURAL ENDOWMENTS
NATURAL RESOURCES
NUTS
PER CAPITA INCOME
POLICY MAKERS
POLITICAL ECONOMY
POLITICAL LEADERSHIP
POLITICAL POWER
POLITICAL SUPPORT
POOR
POOR COUNTRIES
POOR REGIONS
POPULATION CHANGES
PRODUCTION FUNCTIONS
PRODUCTION OF CASH CROPS
PROGRESS
PROSPEROUS REGIONS
REAL GDP
REDISTRIBUTIVE TAXATION
REGIONAL ALLOCATION
REGIONAL DIFFERENCES
REGIONAL DISTRIBUTION
REGIONAL INCOME
REGIONAL INEQUALITY
REGIONALISM
RESPECT
RICE
RICH REGIONS
RURAL
RURAL AREAS
RURAL CONSUMERS
RURAL DWELLERS
RURAL POPULATION
RURAL POPULATIONS
RURAL SECTOR
SECTORAL POLICIES
SOCIAL WELFARE
STRUCTURAL TRANSFORMATION
SUGAR
TEA
TRADE BARRIERS
TRADE POLICIES
TRADE POLICY
TUBERS
WHEAT
YAMS




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