INSTITUTIONS AND MARKET DISTORTIONS - INTERNATIONAL EVIDENCE FOR TOBACCO

The link between institutional factors and agricultural protection lev els is investigated using cross-section time series data on three toba cco types. The analysis includes the presence of monopsonistic marketi ng agencies, political institutions, and the feasibility of tax revenu e collection and diversification. Protection increases with economic d evelopment and with well functioning direct taxation systems, but to b e lower in the most advanced pluralistic democracies. The presence of strong anti-smoking interest groups seems to galvanise the lobbying ef fort of tobacco farmers - higher protection is associated with that pr esence.