World Price Variability versus Protectionism in Agriculture: A Causality Analysis

Bruno Larue and Alan Ker

The Review of Economics and Statistics, 1993, vol. 75, issue 2, 342-46

Abstract: This paper investigates the direction of the prima facie causal relationship between world price variability and protectionism in two agricultural sectors. Parametric and non-parametric causality tests involving an unanticipated measure of world price variability are performed and compared. The results of the tests reflect the fact that the nature of government intervention in agriculture varies across sectors and countries. As argued by Holmes and Hutton (1990), the non-parametric approach is efficient in identifying weak causal relations and is especially convenient when parametric causality tests based on different functional forms generate different results. Also, the effect of protectionism on world price variability is either insignificant or positive and as such contrasts with the ambiguity suggested by recent theoretical developments. Copyright 1993 by MIT Press.

Date: 1993
References: Add references at CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://links.jstor.org/sici?sici=0034-6535%2819930 ... 0.CO%3B2-5&origin=bc full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:tpr:restat:v:75:y:1993:i:2:p:342-46

Ordering information: This journal article can be ordered from
https://mitpressjour ... rnal/?issn=0034-6535

Access Statistics for this article

The Review of Economics and Statistics is currently edited by Pierre Azoulay, Olivier Coibion, Will Dobbie, Raymond Fisman, Benjamin R. Handel, Brian A. Jacob, Kareen Rozen, Xiaoxia Shi, Tavneet Suri and Yi Xu

More articles in The Review of Economics and Statistics from MIT Press
Bibliographic data for series maintained by The MIT Press ().