Regulation and the Transformation of Agriculture
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In this paper, we argue that the peculiar nature of business in agriculture warrants a fresh and comprehensive examination of what constitutes an enabling regulatory framework agricultural transformation. Looking at both the quality and the efficiency of business regulations, and using new cross-sectional data, we investigate the relationship between the heterogeneity in countries’ agricultural productivity and differences in how they regulate agricultural markets. Our results show that agricult ural productivity is on average higher where transaction costs are lower and countries adhere to a higher number of regulatory good practices. This paper is intended as an initial step and it aims to contribute to the generation of an evidence-based discussion around the role of laws and regulations in supporting agricultural performance and, more importantly, the agricultural transformation processes.