OECD Agricultural Subsidies and Poverty Rates in Lower Income Countries

International Journal of Food and Agricultural Economics, Vol. 3 No. 2, Special Issue, 2015, pp. 31-49

19 Pages Posted: 6 Feb 2019

See all articles by Ilaria Tedesco

Ilaria Tedesco

International Fund for Agricultural Development

Alessandra Pelloni

University of Rome II, Department of Economics

Giovanni Trovato

University of Rome Tor Vergata - Faculty of Economics

Date Written: 2015

Abstract

We investigate the implications of the OECD support for agriculture on the headcount poverty rates of developing countries. Following the strategy proposed by McMillan, Peterson Zwane, and Ashraf (2005, 2007), we estimate the cross-country empirical framework building a new OECD policy index and applying different panel data techniques. In addition to the standard parametric model estimators, we also use the finite mixture models to detect heterogeneous effects of the OECD policy index within our sample. We find statistically significant evidence that OECD agricultural policies worsened the poverty rates in some developing countries. Most of the main food exporters appear in fact to be negatively affected by the OECD support for agriculture while the impact detected on food importers is not significant or near to zero.

Keywords: OECD Countires; Agricultural Distortions; International Trade Markets

Suggested Citation

Tedesco, Ilaria and Pelloni, Alessandra and Trovato, Giovanni, OECD Agricultural Subsidies and Poverty Rates in Lower Income Countries (2015). International Journal of Food and Agricultural Economics, Vol. 3 No. 2, Special Issue, 2015, pp. 31-49. Available at SSRN: https://ssrn.com/abstract=3321234

Ilaria Tedesco (Contact Author)

International Fund for Agricultural Development ( email )

Via Paolo di Dono
Rome, 00142
Italy

Alessandra Pelloni

University of Rome II, Department of Economics ( email )

Via Columbia n.2
Rome, rome 00100
Italy
390672595908 (Phone)

Giovanni Trovato

University of Rome Tor Vergata - Faculty of Economics ( email )

Via Columbia n.2
Rome, rome 00100
Italy

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