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Impact of domestic content requirement on the US tobacco and cigarette industries

Author

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  • John C. Beghin
  • A. Blake Brown
  • M. Hasyim Zaini

Abstract

Using a log‐linear equilibrium displacement model we quantify the impact of the recent domestic tobacco content requirement on US cigarette manufacturing. We investigate effects on US growers and manufacturers, and competing tobacco imports. The policy increased domestic use of US‐grown tobacco, but induced a small negative output effect. Tobacco imports decreased substantially. The paper also discusses the political–economic incentives for US manufacturers to comply with such policies. The political cooperation between US growers and manufacturers decreases the opposition of the latter to protectionist policies championed by the former.

Suggested Citation

  • John C. Beghin & A. Blake Brown & M. Hasyim Zaini, 1997. "Impact of domestic content requirement on the US tobacco and cigarette industries," Agricultural Economics, International Association of Agricultural Economists, vol. 15(3), pages 201-212, January.
    • Handle: RePEc:bla:agecon:v:15:y:1997:i:3:p:201-212
    DOI: 10.1111/j.1574-0862.1997.tb00432.x
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    Cited by:

    1. Kazuhiro Takauchi & Tomomichi Mizuno & Qing Hu, 2025. "Rules of origin and regional upstream competition," Discussion Papers 2519, Graduate School of Economics, Kobe University.
    2. Metcalfe, Mark R., 2002. "Environmental Regulation And Implications For Competitiveness In International Pork Trade," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(01), pages 1-22, July.
    3. Gale, H. Frederick, Jr. & Foreman, Linda F. & Capehart, Thomas C., Jr., 2000. "Tobacco And The Economy: Farms, Jobs, And Communities," Agricultural Economic Reports 34007, United States Department of Agriculture, Economic Research Service.
    4. Metcalfe, Mark R., 2001. "Environmental Regulation And Implications For Competitiveness In International Pork Trade," 2001: International Trade in Livestock Products Symposium, January 2001, Auckland, New Zealand 14565, International Agricultural Trade Research Consortium.
    5. Metcalfe, Mark R., 2000. "Environmental Regulation And Implications For U.S. Pork Exports," 2000 Annual meeting, July 30-August 2, Tampa, FL 21808, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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