Analysis and Comparison of Policy Regimes for the Value Added in Agricultural Sector

Abstract

The study was conducted with the aim to compare the value added in agricultural sector in different political regimes. The study period was from 1971-2018. The data on real value added in agriculture and allied sectors were collected from the official website of FAO STATISTICS and the data on political regime scores were collected from Polity Project website. The study period was divided into three periods, each lasting 15 years, namely period I (1971–1986), period II (1987–2002), and period III (2003–2018). The triennium ending averages of the first and last years for each period were used as the base year and the current year, respectively. The analytical tools used in the study were absolute change, relative change average annual growth rate and instability index. In the first period instability was higher in democratic regimes. In the second period instability among autocratic regimes increased to 2.34 percent compared to 2.12 percent among democratic regimes. In the third period growth rate increased to 6.03 per cent in the autocratic conditions. The instability of the real value added in the agriculture sector under autocratic regimes during the second period was 2.34 percent, higher than it was for the other periods. It is important for democratic economies to adopt advantageous features of agricultural policy from autocratic regimes in order to boost economic growth.