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Optimal Export Taxes with an Endogenous Location

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  • Hong Hwang
  • Chao‐cheng Mai

Abstract

Export tax policy is one of the most debated issues in many developing countries. Those countries with strong natural advantages in the production of primary commodities, such as agricultural and livestock products, coffee, jute, rubber, and others, have attained at particular times a position as dominant suppliers in international trade. They have often used export taxes on those commodities to obtain foreign exchange and/or government tax revenues. This paper provides a normative analysis to examine how the inclusion of economic space affects export tax policy and to compare optimal export taxes under endogenous location with optimal export taxes under exogenous location, both in the short run and in the long run.

Suggested Citation

  • Hong Hwang & Chao‐cheng Mai, 1999. "Optimal Export Taxes with an Endogenous Location," Southern Economic Journal, John Wiley & Sons, vol. 65(4), pages 940-952, April.
  • Handle: RePEc:wly:soecon:v:65:y:1999:i:4:p:940-952
    DOI: 10.1002/j.2325-8012.1999.tb00210.x
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    References listed on IDEAS

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