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Agricultural Protection In Developing Countries, Lilyan E. Fulginiti, Richard K. Perrin

Department of Agricultural Economics: Faculty Publications

The present paper explores why farmers are taxed in poor countries and subsidized in rich countries. Using the economic theory of contests to come to an understanding of the incentives for agricultural protectionism, we first sketch a framework for an excludable and rivalrous rent. We then apply this framework to agricultural protectionism in developing countries.