Optimal export taxes – the case of cocoa in Cote d'Ivoire
Export taxes can provide additional welfare to large exporters, an argument for interventions in many primary commodity exporting countries. We investigate the benefits of export taxation for Côte d'Ivoire, the dominant exporter of cocoa. Where many applications treat the formula for optimal export taxes incorrectly as a prescription, we take the endogeneity of the exporter’s share into account. We also distinguish between short-term and long-term effects, relevant for a tree crop like cocoa and we allow for a normal commercial margin between export and farm gate prices. Results are calculated via simulations in a model, in which the age-compositions of the tree stocks of major producing countries are distinguished. Simulations over a period of 15 years show that higher levels of export taxation do not change overall revenues of Côte d'Ivoire on a longer term, but lead to strong redistribution from farmers to the central authorities.
|Date of creation:||2008|
|Contact details of provider:|| Web page: http://www.eaae.org|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Irwin, Douglas A., 2003.
"The optimal tax on antebellum US cotton exports,"
Journal of International Economics,
Elsevier, vol. 60(2), pages 275-291, August.
- Takamasa Akiyama, 1992. "Is there a case for an optimal export tax on perennial crops?," Policy Research Working Paper Series 854, The World Bank.
- Christopher L. Gilbert & Panos Varangis, 2003. "Globalization and International Commodity Trade with Specific Reference to the West African Cocoa Producers," NBER Working Papers 9668, National Bureau of Economic Research, Inc.
- Yilmaz, Kamil, 1999. "Optimal export taxes in a multicountry framework," Journal of Development Economics, Elsevier, vol. 60(2), pages 439-465, December.
- Peter G. Warr, 2001. "Welfare Effects of an Export Tax: Thailand's Rice Premium," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(4), pages 903-920.
When requesting a correction, please mention this item's handle: RePEc:ags:eaa107:6395. 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)
If references are entirely missing, you can add them using this form.