Business & Economics
- © Vilnius University, 2002-2007
- © Brno University of Technology, 2002-2007
- © University of Latvia, 2002-2007
The Price Impact of Adopting the Common Agricultural Policy in Estonia: Estimated and Actual Effects
ABSTRACT. With the accession to the EU, Estonia gave up its liberal trade and agricultural policies and adopted a much more protectionist regime of the EU. Prior to the accession, many studies predicted that this would lead to price increases for agricultural products and processed food. This article discusses the results from the studies conducted and compares them with actual price changes that have occurred. The article concludes that prices have actually increased much less than predicted, with only a few exceptions like sugar and butter. The reason lies in the uncertainties associated with policy modelling, the incomparability of data, and the gradual price convergence already in motion before accession.
KEYWORDS: agricultural policies, food prices, EU accession, Estonia.
JEL classification: F14, F15, Q18, Q11, P2.