IDEAS home Printed from https://ideas.repec.org/p/ags/ilrirr/182867.html

Benefits and cost of compliance of compliance of sanitary regulations in livestock markets: the case of Rift valley Fever in the Somali Region of Ethiopia

Author

Listed:
  • Nin Pratt, A.
  • Bonnet, P.
  • Jabbar, Mohammad A.
  • Ehui, Simeon K.
  • de Haan, C.

Abstract

A recent outbreak of Rift Valley fever in East Africa has led to an export ban by Saudi Arabia and other Gulf countries on livestock products from Ethiopia. An evaluation of the costs of the ban on Ethiopia’s main exporting region (Somali) and their distribution among different types of households, producers and traders is conducted using a standard Computable General Equilibrium (CGE) model. Investment strategies to regain access to the Gulf market and reduce the probability of future bans are also evaluated. Results show that Somali Region’s GDP is reduced by 25% as a consequence of the ban. In addition, poor and better off producers experience total losses in value added of around 50% of their respective levels in a normal year. The evaluation of an animal health programme in the Somali Region to minimise the impact of future bans shows that its implementation is feasible and justifies further analysis focusing in the main factors driving the results. However, results of the analysis of different alternatives to charge producers for the equivalent amount of the cost of the programme show that distortions introduced by taxes and increased transaction costs affect the viability of the programme. Among these alternatives, increasing taxes on livestock sales offers the best prospect as the way to implement the health certification plan in the Somali Region given that it has pro-poor redistribution effects.

Suggested Citation

  • Nin Pratt, A. & Bonnet, P. & Jabbar, Mohammad A. & Ehui, Simeon K. & de Haan, C., 2005. "Benefits and cost of compliance of compliance of sanitary regulations in livestock markets: the case of Rift valley Fever in the Somali Region of Ethiopia," Research Reports 182867, International Livestock Research Institute.
    • Handle: RePEc:ags:ilrirr:182867
    DOI: 10.22004/ag.econ.182867
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/182867/files/2005-RVFin%20Somali-%20ILRI-World%20Bank.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.182867?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Francois,Joseph F. & Reinert,Kenneth A. (ed.), 1998. "Applied Methods for Trade Policy Analysis," Cambridge Books, Cambridge University Press, number 9780521589970, November.
    2. L. J. Hubbard & G. Philippidis, 2001. "General Equilibrium and the Ban on British Beef Exports," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(3), pages 87-95, September.
    3. Scott McDonald & Deborah Roberts, 1998. "The Economy‐Wide Effects of the BSE Crisis: A CGE Analysis," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(3), pages 458-471, September.
    4. Harris, Rebecca Lee & Löfgren, Hans & Robinson, Sherman, 2001. "A standard computable general equilibrium (CGE) model in GAMS," TMD discussion papers 75, International Food Policy Research Institute (IFPRI).
    5. Hertel, Thomas W., 1990. "General Equilibrium Analysis of U.S. Agriculture: What Does It Contribute?," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 42(3), pages 1-7.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jabbar, Mohammad A. & Negassa, Asfaw & Gidyelew, Taye, 2007. "Geographic distribution of cattle and shoats populations and their market supply sheds in Ethiopia," Research Reports 181607, International Livestock Research Institute.
    2. Mulugeta, Elias & Gebremedhin, Berhanu & Hoekstra, D & Jabbar, Mohammad A., 2007. "Analysis of the Ethio-Sudan cross-border cattle trade: the case of Amhara Regonal State," Research Reports 181723, International Livestock Research Institute.
    3. Shafaeddin, Mehdi, 2007. "Who Does Bear the Costs of Compliance with Sanitary and Phytosanitary Measures in Poor Countries?," MPRA Paper 6646, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pierre Boulanger & Hasan Dudu & Emanuele Ferrari & George Philippidis, 2016. "Russian Roulette at the Trade Table: A Specific Factors CGE Analysis of an Agri-food Import Ban," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(2), pages 272-291, June.
    2. Dimitrios Panagiotou & Azzeddine M. Azzam, 2010. "Trade Bans, Imperfect Competition, and Welfare: BSE and the U.S. Beef Industry," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 58(1), pages 109-129, March.
    3. Boulanger, Pierre H & Dudu, Hasan & Ferrari, Emanuele & Philippidis, George, 2015. "The cost of import prohibition for political reason: CGE analysis of the Russian ban on agri-food products," Conference papers 332613, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Christine Wieck & David Holland, 2010. "The economic effect of the Canadian BSE outbreak on the US economy," Applied Economics, Taylor & Francis Journals, vol. 42(8), pages 935-946.
    5. Zamani, Omid & Chibanda, Craig & Pelikan, Janine, 2021. "Investigating Alternative Poultry Trade Policies in the Context of African Countries: Evidence from Ghana," 2021 Conference, August 17-31, 2021, Virtual 315173, International Association of Agricultural Economists.
    6. Morley, Samuel A. & Nakasone, Eduardo & Pineiro, Valeria, 2008. "The Impact of CAFTA on Employment, Production and Poverty in Honduras," IFPRI Discussion Papers 42349, CGIAR, International Food Policy Research Institute (IFPRI).
    7. Breisinger, Clemens & Ecker, Olivier & Funes, José & Yu, Bingxin, 2010. "Food as the basis for development and security: A strategy for Yemen," IFPRI discussion papers 1036, International Food Policy Research Institute (IFPRI).
    8. Go, Delfin S. & Kearney, Marna & Robinson, Sherman & Thierfelder, Karen, 2004. "An Analysis of South Africa's Value Added Tax," Conference papers 331274, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    9. Riccardo Magnani & Luca Piccoli & Martine Carré & Amedeo Spadaro, 2013. "Would a euro's depreciation improve the French economy?," Working Papers hal-01515823, HAL.
    10. Asmah, Emmanuel E. & Levin, Jorgen, 2008. "Aid-Financed Public Investments and the Dutch Disease: Evidence from Tanzania," Working Papers 2008:3, Örebro University, School of Business.
    11. Ahmed, Vaqar & O' Donoghue, Cathal, 2007. "CGE-Microsimulation Modelling: A Survey," MPRA Paper 9307, University Library of Munich, Germany.
    12. Diao, Xinshen & Hazell, Peter B. R. & Resnick, Danielle & Thurlow, James, 2006. "The role of agriculture in development: implications for Sub-Saharan Africa," DSGD discussion papers 29, International Food Policy Research Institute (IFPRI).
    13. Eddy Bekkers & Joseph Francois, 2014. "Bilateral Exchange Rates and Jobs," Review of International Economics, Wiley Blackwell, vol. 22(2), pages 275-298, May.
    14. Delfin Go & Marna Kearney & Vijdan Korman & Sherman Robinson & Karen Thierfelder, 2010. "Wage Subsidy and Labour Market Flexibility in South Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 46(9), pages 1481-1502.
    15. Devadoss, Stephen & Holland, David W. & Stodick, Leroy & Ghosh, Joydeep, 2006. "A General Equilibrium Analysis of Foreign and Domestic Demand Shocks Arising from Mad Cow Disease in the United States," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 31(2), pages 1-13, August.
    16. repec:hal:cepnwp:hal-01515823 is not listed on IDEAS
    17. Onil Banerjee, 2015. "Investing in recovering water for the environment in Australia's Murray-Darling Basin," International Journal of Water Resources Development, Taylor & Francis Journals, vol. 31(4), pages 701-717, December.
    18. Arndt, Channing & Thurlow, James, 2009. "Inequality and Poverty Impacts of Trade Distortions in Mozambique," Agricultural Distortions Working Paper Series 52794, World Bank.
    19. Wobst, Peter, 2002. "The impact of domestic and global trade liberalization on five Southern African countries," TMD discussion papers 92, International Food Policy Research Institute (IFPRI).
    20. Carolina Díaz-Bonilla & Hans Lofgren & Martin Cicowiez, 2008. "Public Policies for the MDGs: The Case of the Dominican Republic," CEDLAS, Working Papers 0072, CEDLAS, Universidad Nacional de La Plata.
    21. Kuiper, Marijke H. & Keita, M.S. & Barbier, Bruno, 2007. "Developing Country impacts - Evaluating case studies," Reports 9290, Wageningen University, SEAMLESS: System for Environmental and Agricultural Modelling; Linking European Science and Society.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    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:ilrirr:182867. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ilrinke.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.