Tariffs, export subsidies, and income supports are major examples of agriculture protection by developed countries. However, comparing the revealed trade advantage and nominal rate of assistance, there is no clear evidence that protection affects trade. Therefore, this study examines the impact of agricultural protection policies on agricultural competitiveness using a fixed effect model with panel data of 76 countries worldwide. The empirical results show that agricultural protection policies do influence agricultural competitiveness. In addition, as mentioned in several studies, the land-labor ratio and average wage partially regulate agricultural competitiveness. The empirical results suggest that agricultural protection policies do reduce trade volume and can cause economic inefficiency at the same time.
