IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/102419.html
   My bibliography  Save this paper

Rents, “infant industry” and contingent protection policies: gains and losses for Argentina’s biodiesel industry

Author

Listed:
  • Nogues, Julio
  • O'Connor, Ernesto

Abstract

Since 2007 and in response to nascent legislation providing subsidies, Argentina’s biodiesel industry started growing fast. The legislation was approved on the target idea that the economy should diversify away from exporting primary products, and shifting to higher processing stages in this case, shifting from soybeans to soybean oil and biodiesel. Initially, responding to these policies clearly tilted towards foreign sales, most of the output was exported. Nevertheless, these export subsidies put investment at risk when the EU imposed antidumping measures. More recently, policies have been tilted towards sales in the domestic market but at the cost of government controlled biodiesel prices. The paper offers estimates of protectionist rents (subsidies) received by the industry from export sales, as well as from sales in the domestic market. We also address the future risks in international markets of continuing with a policy of subsidized exports.

Suggested Citation

  • Nogues, Julio & O'Connor, Ernesto, 2020. "Rents, “infant industry” and contingent protection policies: gains and losses for Argentina’s biodiesel industry," MPRA Paper 102419, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:102419
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/102419/1/MPRA_paper_102419.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Elias A. Baracat & J. Michael Finger & Raúl León Thorne & Julio J. Nogués, 2013. "Sustaining Trade Reform : Institutional Lessons from Argentina and Peru," World Bank Publications - Books, The World Bank Group, number 15794, December.
    2. Colomé, Rinaldo Antonio & Jorge Darío Freitag & Germán Fusta, 2011. "Tipos de cambio real y tasas de "protección" a la agricultura argentina en el período 1930-1959," Económica, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata, vol. 0, pages 91-126, January-D.
    3. Krueger, Anne O, 1974. "The Political Economy of the Rent-Seeking Society," American Economic Review, American Economic Association, vol. 64(3), pages 291-303, June.
    4. Sturzenegger, Adolfo C. & Salazni, Mariana, 2007. "Distortions to Agricultural Incentives in Argentina," Agricultural Distortions Working Paper Series 48389, World Bank.
    5. Baracat, Elias A. & Finger, J. Michael & Thorne, Raul Leon & Nogues, Julio J., 2013. "Sustaining trade reform : institutional lessons from Peru and Argentina," Policy Research Working Paper Series 6610, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nogues, Julio, 2015. "Barreras sobre las exportaciones agropecuarias: impactos económicos y sociales de su eliminación [Dismantling export barriers: economic and social impacts]," MPRA Paper 83223, University Library of Munich, Germany.
    2. Manfred Elsig & Bernard M. Hoekman & Joost Pauwelyn, 2016. "Thinking about the performance of the World Trade Organization: A discussion across disciplines," RSCAS Working Papers 2016/13, European University Institute.
    3. Nogues, Julio J. & O'Connor, Ernesto, 2020. "Missing WTO rules and a non-functioning Appellate Body: lessons from Argentina's biodiesel exports," MPRA Paper 104058, University Library of Munich, Germany.
    4. Weck-Hannemann, Hannelore, 1989. "Protectionism in direct democracy," Discussion Papers, Series II 79, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
    5. P. D. Jonson, 1979. "The State of Australian Economics: Stabilization and Industry Policies: A review article stimulated by F. H. Gruen (ed.), Surveys of Australian Economics, Volume 1," The Economic Record, The Economic Society of Australia, vol. 55(4), pages 297-305, December.
    6. Hinnosaar, Toomas, 2024. "Optimal sequential contests," Theoretical Economics, Econometric Society, vol. 19(1), January.
    7. Bin, Sheng, 2000. "The Political Economy of Trade Policy in China," Working Papers 10/2000, Copenhagen Business School, Department of Management, Politics & Philosophy.
    8. Kjell Hausken, 2023. "Two-period Colonel Blotto contest with cumulative investments over variable assets with resource constraints," SN Business & Economics, Springer, vol. 3(11), pages 1-18, November.
    9. Cohen, Joseph N., 2008. "Managing the Faustian bargain: monetary autonomy in the pursuit of development in Eastern Europe and Latin America," MPRA Paper 22435, University Library of Munich, Germany.
    10. MENNA, Khaled, 2016. "الاقتصاد السياسي للإصلاحات في الدول الغنية بالموارد الطبيعية: دروس مستقاة من التجربة الجزائرية [The Political Economy of Reforms in Rich Natural Resources Countries: Lessons Driven from the Algeria," MPRA Paper 85385, University Library of Munich, Germany.
    11. Antoine Gentier & Giusepina Gianfreda & Nathalie Janson, 2011. "Rent dissipation or government predation ? The notes issuance activity in Italy 1865-1882," Post-Print hal-00735325, HAL.
    12. James Lake & Maia Linask, 2015. "Costly distribution and the non-equivalence of tariffs and quotas," Public Choice, Springer, vol. 165(3), pages 211-238, December.
    13. Deniz Igan & Prachi Mishra & Thierry Tressel, 2012. "A Fistful of Dollars: Lobbying and the Financial Crisis," NBER Macroeconomics Annual, University of Chicago Press, vol. 26(1), pages 195-230.
    14. Tilman Altenburg, 2011. "Can Industrial Policy Work under Neopatrimonial Rule?," WIDER Working Paper Series wp-2011-041, World Institute for Development Economic Research (UNU-WIDER).
    15. Shrabani Saha & Kunal Sen, 2019. "The corruption-growth relationship: Do political institutions matter?," WIDER Working Paper Series wp-2019-65, World Institute for Development Economic Research (UNU-WIDER).
    16. Suman Banerjee & Saul Estrin & Sarmistha Pal, 2022. "Corporate disclosure, compliance and consequences: evidence from Russia," The European Journal of Finance, Taylor & Francis Journals, vol. 28(17), pages 1770-1802, November.
    17. Gregory, Julian & Sovacool, Benjamin K., 2019. "Rethinking the governance of energy poverty in sub-Saharan Africa: Reviewing three academic perspectives on electricity infrastructure investment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 111(C), pages 344-354.
    18. Tang, Xuesong & Lin, Yan & Peng, Qing & Du, Jun & Chan, Kam C., 2016. "Politically connected directors and firm value: Evidence from forced resignations in China," The North American Journal of Economics and Finance, Elsevier, vol. 37(C), pages 148-167.
    19. Knight, J.B. & Sabot, R.H., 1988. "Lewis Through A Looking Glass: Public Sector Employment, Rent-Seeking And Economic Growth," Center for Development Economics 108, Department of Economics, Williams College.
    20. John C. Beghin & William E. Foster & Mylene Kherallah, 1996. "Institutions And Market Distortions: International Evidence For Tobacco," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1‐4), pages 355-365, January.

    More about this item

    Keywords

    Biodiesel; escalated export taxes; export subsidies; Argentina; European Union; antidumping.;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:102419. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.