This paper examines rural-urban spillover effects of agricultural price policy in a developing economy. It employs a computable general equilibrium methodology based on a bi-regional social accounting matrix for Ethiopia. The simulation experiment quantifies system-wide impacts of exports tax on agricultural products. Protecting consumers (particularly urban households), transferring income from producers to consumers, and shifting resources from the agriculture to industry are among the most important motivations cited in the literature for exports tax on agricultural products in developing economies. However, taking inter-regional spill-over effects into account, this study shows that the removal of agricultural export tax does actually improve household welfare both in the rural and urban regions. Also, the elimination of export tax enhances structural transformation of the economy.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
file. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number
1490.
Find related papers by JEL classification: R00 - Urban, Rural, and Regional Economics - - General - - - General H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General F10 - International Economics - - Trade - - - General R15 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
References listed on IDEAS 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.: