The effect of government policies on industries: An approach to its analysis

Kenneth F. Harling
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Kenneth F. Harling: Department of Agricultural Economics and Business, University of Guelph, Guelph, Ontario, Canada, Postal: Department of Agricultural Economics and Business, University of Guelph, Guelph, Ontario, Canada

Agribusiness, 1989, vol. 5, issue 5, 497-504

Abstract: Government policies can have a major impact on the competitiveness and profitability of industries. This article presents an approach that can be used to evaluate their effect, both individually and in concert, on competitiveness and profitability. The approach, which is based on the same principles as those of effective protection, is demonstrated using Ontario's tomato paste and tomato producing industries. Results of the example demonstrate three important contributions of this approach. First, it helps direct attention to those policies which have the most serious effect on the performance of an industry. Second, it recognizes both the positive and negative effects of policy measures on an industry. Third, it shows that policies can have important spillover effects when industries are linked vertically through markets.

Date: 1989
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Persistent link: https://EconPapers.repec.org/RePEc:wly:agribz:v:5:y:1989:i:5:p:497-504

DOI: 10.1002/1520-6297(198909)5:5<497::AID-AGR2720050508>3.0.CO;2-N

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