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On Why Rates Of Assistance Differ Between Australia'S Rural Industries

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  • Anderson, Kym

Abstract

An economic theory of politics is applied to the question of why there are large differences in effective rates of assistance to Australia's rural industries. It is suggested that a major part of the explanation is the different incentives faced by industry lobby groups to demand assistance and by the government to supply assistance. Various determinants of the incentives to demand and supply assistance are hypothesized, and these hypotheses are tested against the existing pattern of rural assistance. The evidence generally supports the hypotheses, and suggests some policy changes to reduce existing government distortions.

Suggested Citation

  • Anderson, Kym, 1978. "On Why Rates Of Assistance Differ Between Australia'S Rural Industries," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 22(2-3), pages 1-16, August.
    • Handle: RePEc:ags:ajaeau:22723
    DOI: 10.22004/ag.econ.22723
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    Cited by:

    1. Peter G. Warr, 1978. "The Case Against Tariff Compensation," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 22(2-3), pages 85-98, 08-12.
    2. Greenville, Jared W. & MacAulay, T. Gordon, 2004. "Tariffs and Steel: The US Safeguard Actions," 2004 Conference (48th), February 11-13, 2004, Melbourne, Australia 58452, Australian Agricultural and Resource Economics Society.
    3. Kym Anderson, 2003. "Measuring Effects of Trade Policy Distortions: How Far Have We Come?," The World Economy, Wiley Blackwell, vol. 26(4), pages 413-440, April.
    4. Geoff W. Edwards, 1987. "Agricultural Policy Debate: A Survey," The Economic Record, The Economic Society of Australia, vol. 63(2), pages 129-143, June.
    5. Kym Anderson, 2020. "Trade Protectionism In Australia: Its Growth And Dismantling," Journal of Economic Surveys, Wiley Blackwell, vol. 34(5), pages 1044-1067, December.
    6. Anderson, Kym & Lattimore, Ralph G. & Lloyd, Peter J. & MacLaren, Donald, 2007. "Distortions to Agricultural Incentives in Australia and New Zealand," 2007 Conference (51st), February 13-16, 2007, Queenstown, New Zealand 10407, Australian Agricultural and Resource Economics Society.
    7. Harris, Stuart, 1979. "The Case Against Tariff Compensation: A Comment," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 23(2), pages 1-5, August.
    8. Haynes, J.E., 1985. "Rural Assistance Levels: The Influence Of Policies And World Price Changes," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 29(1), pages 1-17, April.
    9. Harry de Gorter & Johan F. M. Swinnen, 1994. "The Economic Polity Of Farm Policy," Journal of Agricultural Economics, Wiley Blackwell, vol. 45(3), pages 312-326, September.
    10. MacAulay, T. Gordon & Thomas, W.C. & Musgrave, Warren F., 1988. "SlMULTANEITY IN THE DETERMINATION OF ASSISTANCE TO AGRICULTURE," 1988 Conference (32nd), February 8-11, 1988, Melbourne, Australia 144040, Australian Agricultural and Resource Economics Society.
    11. William J. Martin, 1990. "Public Choice Theory And Australian Agricultural Policy Reform," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 34(3), pages 189-211, December.
    12. Jonathan Pincus, 2014. "Public Choice Theory had Negligible Effect on Australian Microeconomic Policy, 1970s to 2000s," History of Economics Review, Taylor & Francis Journals, vol. 59(1), pages 82-93, January.
    13. Kym Anderson, 1980. "The Political Market for Government Assistance to Australian Manufacturing Industries," The Economic Record, The Economic Society of Australia, vol. 56(153), pages 132-144, June.
    14. D. MacLaren, 1992. "The Political Economy Of Agricultural Policy Reform In The European Community And Australia," Journal of Agricultural Economics, Wiley Blackwell, vol. 43(3), pages 424-439, September.
    15. Kym Anderson, 2016. "National and global price- and trade-distorting policies," Departmental Working Papers 2016-07, The Australian National University, Arndt-Corden Department of Economics.

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    Keywords

    Community/Rural/Urban Development;

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