POLITICAL ECONOMY OF GOVERNMENT SPENDING FOR TRADE LIBERALIZATION: POLITICS OF AGRICULTURE RELATED GOVERNMENT SPENDING FOR THE URUGUAY ROUND IN JAPAN |
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| Authors: | KOZO HARIMAYA KOICHI KAGITANI HIROFUMI TOMINAGA |
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| Affiliation: | 1. Sapporo Gakuin University;2. An earlier version of this paper was presented at the 2005 Spring Meeting of the Japanese Economic Association held at Kyoto Sangyo University. We wish to express our gratitude to Shoji Nishijima, Takumi Naito, Kenji Fujiwara, Akio Namba and an anonymous referee for their helpful suggestions and comments. All remaining errors are our own. This research was supported in part with special research grant from Himeji Dokkyo University. Kagitani gratefully acknowledges its financial support.;3. Himeji Dokkyo University;4. Kobe University |
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| Abstract: | This paper investigates the effect of political factors on the interregional allocation of the budget to assist farmers in coping with agricultural trade liberalization in Japan. We present a simple model to show the relationship between political factors and interregional budget allocation and empirically examine whether political factors played a key role in the interregional allocation of Japanese government spending for the Uruguay Round agricultural trade liberalization. Our findings show that this allocation was distorted due to political reasons, which was problematic from the standpoints of fairness and social efficiency. |
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| Keywords: | D72 H59 Q17 |
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