Domestic sale requirement, price supports, export quota, and inefficiencies
Export tax and export quota are traditional policies used by developing countries to restrict exports. However, a new breed of export control policy, namely domestic sale requirement, is pursued by some developing countries. According to this policy, a certain percentage of the output is required to be sold in the domestic market and only the remaining production can be exported. Indonesia has undertaken this policy in addition to subsidizing domestic sales of crude oil to benefit the consumers. This study analyzes the effects of these two policies on prices, quantities, and welfare, and compares these effects to those of export quota. The results show that the domestic sale requirement-cum-subsidy policies are clearly inferior to free trade but superior to export quota, because under these policies, unlike under the export quota, supply is allowed to respond to world market prices.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 18 (2009)
Issue (Month): 2 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/RJTE20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RJTE20|
When requesting a correction, please mention this item's handle: RePEc:taf:jitecd:v:18:y:2009:i:2:p:297-309. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.