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Lobbying for cheaper inputs? Political economy of export taxation

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  • Solleder, Jean-Marc
  • Solleder, Olga

Abstract

This paper investigates the political economy determinants of export taxes using a theoretical framework, which extends the Grossman and Helpman (1994) model to account for input-output linkages and lobbying by both intermediate and final goods producers. The model predicts that downstream industries may lobby for export taxes on intermediate goods to reduce domestic input costs, while upstream sectors counter-lobby against such measures. We test this prediction using product-level data covering 16 countries, combining information on export taxes, input requirements, production, and trade elasticities. The results provide robust evidence that lobbying incentives significantly influence the imposition of export taxes.

Suggested Citation

  • Solleder, Jean-Marc & Solleder, Olga, 2025. "Lobbying for cheaper inputs? Political economy of export taxation," Economics Letters, Elsevier, vol. 255(C).
    • Handle: RePEc:eee:ecolet:v:255:y:2025:i:c:s0165176525003799
    DOI: 10.1016/j.econlet.2025.112542
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    References listed on IDEAS

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    1. Paola Conconi & Manuel García-Santana & Laura Puccio & Roberto Venturini, 2018. "From Final Goods to Inputs: The Protectionist Effect of Rules of Origin," American Economic Review, American Economic Association, vol. 108(8), pages 2335-2365, August.
    2. Grossman, Gene M & Helpman, Elhanan, 1994. "Protection for Sale," American Economic Review, American Economic Association, vol. 84(4), pages 833-850, September.
    3. Kym Anderson & Gordon Rausser & Johan Swinnen, 2013. "Political Economy of Public Policies: Insights from Distortions to Agricultural and Food Markets," Journal of Economic Literature, American Economic Association, vol. 51(2), pages 423-477, June.
    4. By Kishore Gawande & Pravin Krishna & Marcelo Olarreaga, 2012. "Lobbying Competition Over Trade Policy," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 53(1), pages 115-132, February.
    5. David Laborde & Carmen Estrades & Antoine Bouët, 2013. "A Global Assessment of the Economic Effects of Export Taxes," The World Economy, Wiley Blackwell, vol. 36(10), pages 1333-1354, October.
    6. Solleder, Jean-Marc, 2020. "Market power and export taxes," European Economic Review, Elsevier, vol. 125(C).
    7. Giovanni Maggi & Pinelopi Koujianou Goldberg, 1999. "Protection for Sale: An Empirical Investigation," American Economic Review, American Economic Association, vol. 89(5), pages 1135-1155, December.
    8. Olga Solleder, 2013. "Panel Export Taxes (PET) Dataset: New Data on Export Tax Rates," IHEID Working Papers 07-2013, Economics Section, The Graduate Institute of International Studies.
    9. Piermartini, Roberta, 2004. "The role of export taxes in the field of primary commodities," WTO Discussion Papers 4, World Trade Organization (WTO), Economic Research and Statistics Division.
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    More about this item

    Keywords

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    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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