IDEAS home Printed from
   My bibliography  Save this paper

Does tariff escalation affect export shares: The case of cotton and coffee in global trade


  • Narayanan G, Badri
  • Khorana, Sangeeta


Many studies show that Tariff Escalation (TE) lowers export shares in many of the processing sectors, given their higher level of protection. However, there are instances when the export shares of processed sectors are higher despite the existence of TE. We examine both these contrasting cases of TE in this paper. On the one hand, there is TE in coffee and coffee products in developing countries, which lead in raw coffee exports and lag in roasted coffee exports. On the other hand, there is a similar pattern of TE in developing countries, which are leading exporters of cotton textiles, but not as much of raw cotton. This raises the question whether TE has a systematic impact on a country’s export shares. We use a widely used economy-wide model named GTAP (Global Trade Analysis Project) and its accompanying Data Base 2004 version. We supplement the data with UN commodity statistics and other country-specific and industry-specific sources to split cotton, cotton textiles, coffee and coffee products from aggregated sectors in this dataset. We analyze different policy scenarios of bringing the tariffs for processing sectors to the levels of their raw materials for the value-chains of cotton and coffee. Our results focusing on export shares show that TE can lead to higher or lower export shares depending on various other factors such as the actual tariff differences across sectors and countries.

Suggested Citation

  • Narayanan G, Badri & Khorana, Sangeeta, 2011. "Does tariff escalation affect export shares: The case of cotton and coffee in global trade," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103946, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea11:103946

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. MacDonald, Stephen & Pan, Suwen & Somwaru, Agapi & Tuan, Francis C., 2004. "China'S Role In World Cotton And Textile Markets," 2004 Annual meeting, August 1-4, Denver, CO 20054, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Cororaton, Caesar B. & Salam, Abdul & Altaf, Zafar & Orden, David & Dewina, Reno & Minot, Nicholas & Nazli, Hina, 2008. "Cotton-Textile-Apparel sectors of Pakistan: Situations and challenges faced," IFPRI discussion papers 800, International Food Policy Research Institute (IFPRI).
    3. Bedi, Jatinder S. & Cororaton, Caesar B., 2008. "Cotton-textile-apparel sectors of India:," IFPRI discussion papers 801, International Food Policy Research Institute (IFPRI).
    4. Yeats, Alexander J., 1984. "On the analysis of tariff escalation : Is there a methodological bias against the interest of developing countries?," Journal of Development Economics, Elsevier, vol. 15(1-3), pages 77-88.
    Full references (including those not matched with items on IDEAS)

    More about this item


    International Relations/Trade; F14-Country and Industry Studies of Trade; O57-Economywide Comparative Studies of Countries; L66-Food Beverages Cosmetics and Tobacco; L67- Clothing Textiles Shoes and Leather; N5 – Agriculture;

    JEL classification:

    • N5 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea11:103946. 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: (AgEcon Search). General contact details of provider: .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.