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Export Taxes and Consumption: A ‘Natural Experiment’ from Côte d'Ivoire

Listed author(s):
  • Souleymane Soumahoro

    ()

    (University of Oklahoma)

TI exploit the emergence of two de facto states in Côte d'Ivoire during the 2002-2007 political crisis to examine the effects of an export tax reduction for cocoa beans on the living standards of farming households. Combining both spatial and temporal variations in exposure to a set of dichotomous tariff policies, I find that farmers in low tariff districts significantly increased their consumption expenditure relative to farmers in high tariff districts. I also provide evidence that the transmission of border prices to local farmers is a relevant mechanism through which the reduction of trade barriers enhances cocoa farmers' living standards.

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File URL: http://www.hicn.org/wordpress/wp-content/uploads/2012/06/HiCN-WP-182.pdf
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Paper provided by Households in Conflict Network in its series HiCN Working Papers with number 182.

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Length: 43 pages
Date of creation: Sep 2014
Handle: RePEc:hic:wpaper:182
Contact details of provider: Web page: http://www.hicn.org

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  8. Margaret McMillan, 2001. "Why Kill The Golden Goose? A Political-Economy Model Of Export Taxation," The Review of Economics and Statistics, MIT Press, vol. 83(1), pages 170-184, February.
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  10. Bogetic, Zeljko & Noer, John & Espina, Carlos, 2007. "Cote d'Ivoire : from success to failure a story of growth, specialization, and the terms of trade," Policy Research Working Paper Series 4414, The World Bank.
  11. Alexei P Kireyev, 2010. "Export Tax and Pricing Power; Two Hypotheses on the Cocoa Market in Côte d’Ivoire," IMF Working Papers 10/269, International Monetary Fund.
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