Regulatory Constraints to Agricultural Productivity

27 Pages Posted: 22 Sep 2017

Date Written: September 20, 2017


The economic thinking around the role of agriculture for development has evolved since the 1950s. Over the past decades, the agriculture sector has been rediscovered as a sector with great potential for triggering growth, reducing poverty and inequality, providing food security, and delivering environmental services. This paper contributes to the literature on the determinants of agricultural development by investigating the role played by laws and regulations. First, the paper proposes new measures of regulatory quality and regulatory efficiency in agriculture. Second, the paper employs cross-section data to test the relationship of the proposed measures with agricultural performance. The results indicate that agricultural productivity is on average higher where transaction costs imposed by regulations are lower and where countries adhere to more regulatory good practices. This relationship is stronger when low transaction costs and regulatory good practices are combined.

Keywords: Social Policy, Industrial Management, Legal Products, Marketing, Regulatory Regimes, Legislation, Private Sector Economics, Judicial System Reform, Private Sector Development Law, Legal Reform

Suggested Citation

Divanbeigi, Raian and Saliola, Federica, Regulatory Constraints to Agricultural Productivity (September 20, 2017). World Bank Policy Research Working Paper No. 8199. Available at SSRN:

Raian Divanbeigi (Contact Author)

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Federica Saliola

World Bank

1818 H Street, NW
Washington, DC 20433
United States

Register to save articles to
your library


Paper statistics

Abstract Views
PlumX Metrics