Trade Policy Options for a Food-Security Commodity in Southern Africa: A Case Study of Maize in Zambia
AbstractWe examine the performance of maize import policy options in one of the poorest countries in Southern Africa. The results are shaped by unique features of Zambiaâ€™s maize market: production that is limited by risk and highly variable returns, and local marketing margins that increase with imports and limit consumer trade gains. Results suggest that the market-stabilizing protection with the variable import levy (VL) may improve welfare, compared free trade or the current tariff regime. The VL also redistributes benefits to farmers and rural residents and away from urban consumers. Tax revenues could be used to fund transportation improvements or an urban consumer subsidy. Also, we estimate that market-led improvements in transport infrastructure, which would be conducive to more open trade policies, may be 25 years away.
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Bibliographic InfoPaper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 34830.
Date of creation: 24 Jan 2012
Date of revision:
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Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
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Maize Policy; Zambia; Food Security; Variable Levy;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-02-08 (All new papers)
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.:
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"Estimation of dynamic maize supply response in Zambia,"
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