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Market power and export taxes

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  • Solleder, Jean-Marc

Abstract

This paper explores the extent to which market power considerations explain levels of export taxes. Market power is proxied by the inverse import demand elasticities faced by exporters. The paper first provides estimates of market power for exporting countries and products at the 6-digit level of the Harmonized System. It then finds a positive correlation between market power and export taxes. This result supports the theory that, when unconstrained in their trade policy choices, countries take their market power into account when setting their export taxes.

Suggested Citation

  • Solleder, Jean-Marc, 2020. "Market power and export taxes," European Economic Review, Elsevier, vol. 125(C).
    • Handle: RePEc:eee:eecrev:v:125:y:2020:i:c:s001429212030057x
    DOI: 10.1016/j.euroecorev.2020.103425
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    Cited by:

    1. Xi He, 2022. "Political and economic determinants of export restrictions in the agricultural and food sector," Agricultural Economics, International Association of Agricultural Economists, vol. 53(3), pages 439-453, May.

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    More about this item

    Keywords

    Market power; Export taxes; Export policy; Import demand elasticities;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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