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AGRICULTURAL PRICE PROTECTION, IMPORT DEPENDENCE AND ECONOMIC DEVELOPMENT: THE CASE OF WHEAT
Author(s) -
Herrmann R.
Publication year - 1989
Publication title -
journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.157
H-Index - 61
eISSN - 1477-9552
pISSN - 0021-857X
DOI - 10.1111/j.1477-9552.1989.tb01095.x
Subject(s) - economics , boom , agriculture , commodity , agricultural economics , price level , international economics , monetary economics , market economy , geography , environmental science , archaeology , environmental engineering
This article analyses determinants of agricultural price protection for one important food, wheat, in a pooled cross‐country and time‐series analysis. For the aggregate sample it is shown that wheat price protection increases with a rising level of economic development and with a growing import dependence in wheat. Beyond this general pattern, the paper shows that the variation in wheat price protection can be significantly better explained if qualitative variables are introduced additionally into the model. For example, in Japan, in the Northern European countries and during the commodity price boom (1973–75), wheat price protection followed a specific pattern. Income elasticities and import‐dependence elasticities of wheat price protection are computed for all countries in 1968–80, and additionally for various sub‐regions and sub‐periods.