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The effect of government policies on industries: An approach to its analysis

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  • Kenneth F. Harling

    (Department of Agricultural Economics and Business, University of Guelph, Guelph, Ontario, Canada)

Abstract

Government policies can have a major impact on the competitiveness and profitability of industries. This article presents an approach that can be used to evaluate their effect, both individually and in concert, on competitiveness and profitability. The approach, which is based on the same principles as those of effective protection, is demonstrated using Ontario's tomato paste and tomato producing industries. Results of the example demonstrate three important contributions of this approach. First, it helps direct attention to those policies which have the most serious effect on the performance of an industry. Second, it recognizes both the positive and negative effects of policy measures on an industry. Third, it shows that policies can have important spillover effects when industries are linked vertically through markets.

Suggested Citation

  • Kenneth F. Harling, 1989. "The effect of government policies on industries: An approach to its analysis," Agribusiness, John Wiley & Sons, Ltd., vol. 5(5), pages 497-504.
    • Handle: RePEc:wly:agribz:v:5:y:1989:i:5:p:497-504
    DOI: 10.1002/1520-6297(198909)5:5<497::AID-AGR2720050508>3.0.CO;2-N
    as

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    References listed on IDEAS

    as
    1. David T. W. Leung, 1973. "The Concept Of Effective Subsidy And Its Application To The Canadian Flour Milling Industry," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 21(1), pages 1-9, February.
    2. Harling, Kenneth F, 1983. "Agricultural Protectionism in Developed Countries: Analysis of Systems of Intervention," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 10(3), pages 223-247.
    3. Tangermann, Stefan & Josling, Timothy E. & Pearson, Scott R., 1987. "International Negotiations on Farm Support Levels: The Role of PSEs," Working Papers 51239, International Agricultural Trade Research Consortium.
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