An international comparison of the effect of government support on agricultural productivity

This paper provides an econometric evaluation the effect of government support to agriculture on a measure of the agricultural labor productivity in 16 countries with different level of support. The econometric model we construct specifically utilizes two values calculated by the Organization for Economic Cooperation and Development (OECD ): Producer Support Estimates as a percentage of gross farm receipts and the Consumer Nominal Protection Coefficient. These two variables represent transfers from taxpayers and consumers to agricultural producers through government programs and transfers from consumers to government or vice versa, respectively. By using regression model, we draw conclusions for groups of countries on the basis of their relevant levels of government support.