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Optimal Export Taxes, Welfare, Industry Concentration, and Firm Size: A General Equilibrium Analysis

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  • De Santis, Roberto A

Abstract

By using an imperfect-competition model, it is shown that an export tax, optimal in partial equilibrium, is upwardly biased and may not be optimal in a general equilibrium setting with free entry/exit. It is shown also that the export tax has an ambiguous impact on firm size. The results of an applied general equilibrium model for the Turkish economy suggest that the export tax estimated with the PE formula is larger by a small factor than the computed export tax. However, the export tax leads to an increase in firm size and, most importantly, to a social welfare loss. Copyright 2000 by Blackwell Publishing Ltd.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Review of International Economics.

Volume (Year): 8 (2000)
Issue (Month): 2 (May)
Pages: 319-35

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Handle: RePEc:bla:reviec:v:8:y:2000:i:2:p:319-35

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Cited by:
  1. Reza Oladi & John Gilbert, 2009. "Buyer and Seller Concentration in Global Commodity Markets," Working Papers, Utah State University, Department of Economics 200911, Utah State University, Department of Economics, revised 15 Sep 2009.
  2. Roberto A. De Santis & Frank Stähler, 2001. "Trade Policies for Exporting Industries under Free Entry," German Economic Review, Verein für Socialpolitik, Verein für Socialpolitik, vol. 2(4), pages 327-338, November.
  3. Fraser, Iain & Waschik, Robert, 2006. "A Computable General Equilibrium Analysis of Export Taxes in the Australian Wool Industry," 2006 Conference (50th), February 8-10, 2006, Sydney, Australia, Australian Agricultural and Resource Economics Society 139733, Australian Agricultural and Resource Economics Society.

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