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

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  • Klomp, Jeroen

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.

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  • Klomp, Jeroen, 2014. "The political economy of agricultural liberalization in Central and Eastern Europe: An empirical analysis," Food Policy, Elsevier, vol. 49(P1), pages 332-346.
    • Handle: RePEc:eee:jfpoli:v:49:y:2014:i:p1:p:332-346
    DOI: 10.1016/j.foodpol.2014.08.003
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