ENDOGENEOUS PRICE AND TRADE-POLICY DEVELOPMENTS IN CENTRAL-EUROPEAN AGRICULTURE

Endogenous policy theory is used to explain developments in agricultur al and trade policies in Central Europe (CE). There have been three ph ases since 1989. After the initial liberalisation, ad hoc intervention s emerged to protect consumers and producers against the negative real income effects of economic reform. These ad hoc interventions were gr adually consolidated into a policy package. Average CE agricultural pr otection increased after 1992, but large differences exist between cou ntries and commodities. The differences are largely consistent with po litical economy predictions. Domestic political economy factors may st imulate further increases in agricultural protection as CE economies g row. International agreements could play an important role in limiting CE agricultural protectionism.