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The Sectoral Incidence Of Protection And Zimbabwean Agriculture

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  • M. Wiebelt

Abstract

This article applies the literature on ‘incidence analysis’ to the case of Zimbabwe, the main hypothesis being that industrial protection indirectly taxes agricultural exports by increasing the price of non‐tradeables. The extent to which industrial protection increases the price of non‐tradeables is measured by Sjaastad's incidence parameter. The study shows that there exists a generally high level of incidence and finds major differences in ‘true protection’ across categories of exportables and individual agricultural export commodities. The calculated price effects of industrial protection indicate substantial indirect disincentives to the production of agricultural exportables. On average, these are more than offset by direct subsidies in the case of beef. For other agricultural export commodities, indirect taxes either overcompensate direct subsidies or exacerbate the negative direct protection resulting in extremely high true taxation.

Suggested Citation

  • M. Wiebelt, 1992. "The Sectoral Incidence Of Protection And Zimbabwean Agriculture," Journal of Agricultural Economics, Wiley Blackwell, vol. 43(2), pages 205-217, May.
    • Handle: RePEc:bla:jageco:v:43:y:1992:i:2:p:205-217
    DOI: 10.1111/j.1477-9552.1992.tb00215.x
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    References listed on IDEAS

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    1. Wiebelt, Manfred, 1990. "Some preliminary findings on the sectoral incidence of protection in Zimbabwe," Kiel Working Papers 419, Kiel Institute for the World Economy (IfW Kiel).
    2. Bautista, Romeo M., 1987. "Production incentives in Philippine agriculture: effects of trade and exchange rate policies," Research reports 59, International Food Policy Research Institute (IFPRI).
    3. Krueger, Anne O & Schiff, Maurice & Valdes, Alberto, 1988. "Agricultural Incentives in Developing Countries: Measuring the Effect of Sectoral and Economywide Policies," The World Bank Economic Review, World Bank, vol. 2(3), pages 255-271, September.
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    Cited by:

    1. Njinkeu, Dominique, 1996. "Evaluation of the incentive structure: A survey and application to Cameroon," World Development, Elsevier, vol. 24(3), pages 557-568, March.
    2. Eva Pardos & José-Ma Serrano-Sanz, 2002. "The Incidence of Protection on Exports: The Case of Spain, 1870–1913," Open Economies Review, Springer, vol. 13(2), pages 183-203, April.
    3. Bautista, Romeo M. & Thomas, Marcelle & Muir-Leresche, Kay & Lofgren, Hans, 2002. "Macroeconomic policy reforms and agriculture: towards equitable growth in Zimbabwe," Research reports 128, International Food Policy Research Institute (IFPRI).
    4. Vink, N., 1992. "Expanding The Playing Field: South Africa, Southern Africa And The Role Of The Agricultural Economist," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 31(4), December.

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