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Institutions and Market Distortions: International Evidence for Tobacco

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  • Beghin, John C.
  • Foster, William E.
  • Kherallah, Mylene

Abstract

The link between institutional factors and agricultural protection levels is investigated using cross‐section time series data on three tobacco types. The analysis includes the presence of monopsonistic marketing agencies, political institutions, and the feasibility of tax revenue collection and diversification. Protection increases with economic development and with well functioning direct taxation systems, but tends to be lower in the most advanced pluralistic democracies. The presence of strong anti‐smoking interest groups seems to galvanise the lobbying effort of tobacco farmers — higher protection is associated with that presence.
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Suggested Citation

  • Beghin, John C. & Foster, William E. & Kherallah, Mylene, 1996. "Institutions and Market Distortions: International Evidence for Tobacco," Staff General Research Papers Archive 1569, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:1569
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    1. Lilyan E. Fulginiti & Jason F. Shogren, 1992. "Agricultural Protection in Developing Countries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(3), pages 795-801.
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    Cited by:

    1. Alessandro Olper, 2001. "Determinants of Agricultural Protection: The Role of Democracy and Institutional Setting Alessandro Olper," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(2), pages 75-92, May.
    2. Henning, Christian H.C.A. & Struve, Carsten & Brockmeier, Martina, 2008. "The logic of the CAP: Politics or Economics?," Agricultural Distortions Working Paper Series 48639, World Bank.
    3. Swinnen, Johan F. M. & Banerjee, Anurag N. & Gorter, Harry de, 2001. "Economic development, institutional change, and the political economy of agricultural protection: An econometric study of Belgium since the 19th century," Agricultural Economics, Blackwell, vol. 26(1), pages 25-43, October.
    4. Henning, Christian H.C.A., 2008. "Determinants of Agricultural Protection in an International Perspective: The Role of Political Institutions," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43872, European Association of Agricultural Economists.
    5. Swinnen, Johan F.M., 2008. "The Political Economy of Agricultural Protection: Europe in the 19th and 20th Century," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43859, European Association of Agricultural Economists.
    6. Mogues, Tewodaj & Olofinbiyi Tolulope, 2017. "Institutions And Public Agricultural Investments: A Qualitative Study Of State And Local Government Spending In Nigeria," Feed the Future Innovation Lab for Food Security Policy Research Papers 259576, Michigan State University, Department of Agricultural, Food, and Resource Economics, Feed the Future Innovation Lab for Food Security (FSP).
    7. Swinnen, Johan F. M. & Gorter, Harry de & Rausser, Gordon C. & Banerjee, Anurag N., 2000. "The political economy of public research investment and commodity policies in agriculture: an empirical study," Agricultural Economics, Blackwell, vol. 22(2), pages 111-122, March.
    8. Abmann, Christian & Henning, Christian H.C.A. & Krampe, Eva, 2012. "Constitutional Rules, Informal Institutions and Agricultural Protection in Developing and Industrial Countries: Theory and Empirical Evidence," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124885, Agricultural and Applied Economics Association.

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