The Implications of an Export Tax on Sectoral Growth: A Case in Pakistan
AbstractThe implications of and export tax on sectoral economic growth in the cotton and yarn sectors in Pakistan are examined. Pakistan utilized an export tax on raw cotton fiber from 1988-1995 in order to lower input cost to domestic yarn spinners. The growth effects are simulated based on the results of a structural econometric model. Simulation results show that the export tax had a significant adverse impact on growth in the raw fiber sector. The lower input cost as a result of the tax, however, did not appear to stimulate growth in the yarn sector over what would have occurred without the policy.
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Bibliographic InfoPaper provided by Texas Tech University, Department of Agricultural and Applied Economics in its series Cotton Economics Research Institute CER Series with number 53164.
Date of creation: 1998
Date of revision:
Agricultural and Food Policy;
Other versions of this item:
- Hudson, Darren & Ethridge, Don E., 1998. "The Implications Of An Export Tax On Sectoral Growth: A Case In Pakistan," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20986, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Feder, Gershon, 1983. "On exports and economic growth," Journal of Development Economics, Elsevier, vol. 12(1-2), pages 59-73.
- Joelle Latina & Roberta Piermartini & Michele Ruta, 2011. "Natural resources and non-cooperative trade policy," International Economics and Economic Policy, Springer, vol. 8(2), pages 177-196, June.
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