The pattern of agricultural price distortions in Central and Eastern Europe

Nominal and adjusted protection rates for nine agricultural commodities in seven Central European and three Baltic states are estimated for the transition period 1990-95. Our estimates indicate that agricultural and food price distortions differ strongly between Central and East European countries, between commodities, and varied over time. The average level of price distortions decreased in 1991 and 1992 after price and trade liberalization, but increased again in 1993 as many of these countries re-introduced protectionist price and trade policy measures. Since 1994, the average level of price distortions has declined again. Accounting for exchange rate policy effects further reduces estimates of protection of agricultural producers. (C) 1997 Elsevier Science Ltd.