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Income Distributional Impacts of Trade Policies in a Multi-Market Framework: A Case in Pakistan

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  • Hudson, Darren
  • Ethridge, Don

Abstract

The impacts of using export taxes as a price control in a multi-market framework are explored using the cotton and yarn sectors in Pakistan as examples. Results show that the export tax on cotton increased domestic consumption and decreased exports of cotton in Pakistan, transferring income from cotton producers to yarn spinners and the government. There was a social loss to Pakistan in the cotton sector. The export tax on cotton increased domestic yarn production, consumption, exports, and incomes of yarn spinners, but resulted in a large transfer (social loss) out of the yarn sector.

Suggested Citation

  • Hudson, Darren & Ethridge, Don, 2000. "Income Distributional Impacts of Trade Policies in a Multi-Market Framework: A Case in Pakistan," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 32(1), pages 49-61, April.
    • Handle: RePEc:cup:jagaec:v:32:y:2000:i:01:p:49-61_02
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    Cited by:

    1. Schmitz, Troy G., 2002. "Measuring Inefficiency In The Presence Of An Export Tax, An Import Tariff, And A State Trading Enterprise," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 34(01), pages 1-13, April.
    2. Ying Lin & Henry W. Kinnucan, 2020. "The optimal export tax for a primary commodity in a vertical market," Agricultural Economics, International Association of Agricultural Economists, vol. 51(6), pages 909-922, November.
    3. Hudson, Darren, 2000. "The World Trade Organization And Southern Agriculture: The Cotton Perspective," Professional Papers 15804, Mississippi State University, Department of Agricultural Economics.

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