Export Tax and Pricing Power: Two Hypotheses on the Cocoa Market in Côte d'Ivoire
Abstract
The paper models export taxation of a primary commodity in a large country under two hypotheses about the structure of its export market. The first is perfect competition among exporters, where there is an indefinite number of buyers of the local product and at least a partial pass-through of international prices to local producers. The second is an oligopsony, a market structure in some low-income countries where numerous scattered local producers face a few powerful exporters that can influence domestic prices. For both hypotheses, export taxation can be justified on efficiency grounds only for the country that adopts the tax. Designed correctly, a low export tax may be welfare-enhancing for that country but will always be welfare-reducing for its trading partners. The models of export taxation for both hypotheses are calibrated for the illustrative case of cocoa exports from Cote d'Ivoire.Download Info
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Paper provided by International Monetary Fund in its series IMF Working Papers with number 10/269.Length: 1462
Date of creation: 01 Nov 2010
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Handle: RePEc:imf:imfwpa:10/269
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Related research
Keywords: Agricultural exports; Cocoa; Commodity prices; Export markets; Export taxes; Low-income developing countries; Price structures; Taxation;This paper has been announced in the following NEP Reports:
- NEP-ACC-2011-01-03 (Accounting & Auditing)
- NEP-AGR-2011-01-03 (Agricultural Economics)
- NEP-ALL-2011-01-03 (All new papers)
References
References listed on IDEASPlease 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.:
- Vincenzo Denicolo & Massimo Matteuzzi, 2000. "Specific and Ad Valorem Taxation in Asymmetric Cournot Oligopolies," International Tax and Public Finance, Springer, vol. 7(3), pages 335-342, May.
- Yilmaz, Kamil, 1999. "Optimal export taxes in a multicountry framework," Journal of Development Economics, Elsevier, vol. 60(2), pages 439-465, December.
- Bandyopadhyay, Subhayu, 1996. "Growth, welfare and optimal trade taxes: a fallacy of composition," Journal of Development Economics, Elsevier, vol. 50(2), pages 369-380, August.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Olga Solleder, 2013. "Trade Effects of Export Taxes," IHEID Working Papers 08-2013, Economics Section, The Graduate Institute of International Studies, revised 08 Apr 2013.
- Olga Solleder, 2013. "Panel Export Taxes (PET) Dataset: New Data on Export Tax Rates," IHEID Working Papers 07-2013, Economics Section, The Graduate Institute of International Studies, revised 04 Apr 2013.
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