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Export Taxes and Consumption: Evidence from Côte d’Ivoire’s De Facto Partition

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  • Souleymane Soumahoro

Abstract

I exploit the emergence of two de facto states in Côte d’Ivoire during the 2002–11 political crisis to examine the effects of an export tax reduction for cocoa beans on the living standards of farming households. Combining both spatial and temporal variations in exposure to a set of dichotomous export tax policies, I find that farmers in low export tax districts significantly increased their consumption expenditures relative to farmers in high tax districts. I also provide evidence that the transmission of border prices to local farmers is a relevant mechanism through which the reduction of trade barriers enhances cocoa farmers’ living standards.

Suggested Citation

  • Souleymane Soumahoro, 2017. "Export Taxes and Consumption: Evidence from Côte d’Ivoire’s De Facto Partition," Economic Development and Cultural Change, University of Chicago Press, vol. 65(3), pages 425-456.
    • Handle: RePEc:ucp:ecdecc:doi:10.1086/690826
    DOI: 10.1086/690826
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    Cited by:

    1. Van Bockstael, Steven, 2019. "Land grabbing “from below”? Illicit artisanal gold mining and access to land in post-conflict Côte d’Ivoire," Land Use Policy, Elsevier, vol. 81(C), pages 904-914.
    2. Mélanie Ahoba & Frédéric Gaspart, 2019. "Rubber world price transmission to Ivorian producer prices: an analysis in the presence of structural breaks," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 7(1), pages 1-14, December.

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