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Why do farmers seek office? Regulatory capture in Russian agricultural subsidization

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  • Kvartiuk, Vasyl
  • Herzfeld, Thomas

Abstract

This study examines whether Russian farmers who enter regional politics can skew local policies in their favor. We hypothesize that Russian regions with more local members of parliament (MPs) owning agricultural businesses and farmer-ministers are more likely to allocate higher agricultural subsidies. To test these hypotheses, we use a unique 2008–2015 panel dataset on agricultural subsidies in combination with qualitative data. We find that the pervasiveness of agricultural interest in local parliaments affects the size of agricultural subsidies. Regional agriculture ministers who own farms may play the role of “gatekeepers” to the subsidies.

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  • Kvartiuk, Vasyl & Herzfeld, Thomas, 2023. "Why do farmers seek office? Regulatory capture in Russian agricultural subsidization," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 61(2), pages 111-130.
    • Handle: RePEc:zbw:espost:268614
    DOI: 10.1080/00128775.2022.2149556
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    More about this item

    Keywords

    political connections; redistribution; agricultural subsdies; businesspeople-politicians; Russia;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies

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