IDEAS home Printed from https://ideas.repec.org/p/hic/wpaper/182.html
   My bibliography  Save this paper

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

Author

Listed:
  • Souleymane Soumahoro

    () (University of Oklahoma)

Abstract

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.

Suggested Citation

  • Souleymane Soumahoro, 2014. "Export Taxes and Consumption: A ‘Natural Experiment’ from Côte d'Ivoire," HiCN Working Papers 182, Households in Conflict Network.
  • Handle: RePEc:hic:wpaper:182
    as

    Download full text from publisher

    File URL: http://www.hicn.org/wordpress/wp-content/uploads/2012/06/HiCN-WP-182.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Porto, Guido G., 2006. "Using survey data to assess the distributional effects of trade policy," Journal of International Economics, Elsevier, vol. 70(1), pages 140-160, September.
    2. Olson, Mancur, 1985. "The Exploitation and Subsidization of Agriculture in Developing and Developed Countries," 1985 Conference, August 26-September 4, 1985, Málaga, Spain 182530, International Association of Agricultural Economists.
    3. L. ALAN WINTERS & NEIL McCULLOCH & ANDREW McKAY, 2015. "Trade Liberalization and Poverty: The Evidence So Far," World Scientific Book Chapters,in: Non-Tariff Barriers, Regionalism and Poverty Essays in Applied International Trade Analysis, chapter 14, pages 271-314 World Scientific Publishing Co. Pte. Ltd..
    4. A. Colin Cameron & Jonah B. Gelbach & Douglas L. Miller, 2011. "Robust Inference With Multiway Clustering," Journal of Business & Economic Statistics, Taylor & Francis Journals, pages 238-249.
    5. Gruber, Jonathan, 1994. "The Incidence of Mandated Maternity Benefits," American Economic Review, American Economic Association, vol. 84(3), pages 622-641, June.
    6. Trefler, Daniel, 1993. "Trade Liberalization and the Theory of Endogenous Protection: An Econometric Study of U.S. Import Policy," Journal of Political Economy, University of Chicago Press, vol. 101(1), pages 138-160, February.
    7. Guy B. Nkamleu & Anne Kielland, 2006. "Modeling farmers' decisions on child labor and schooling in the cocoa sector: a multinomial logit analysis in Côte d'Ivoire," Agricultural Economics, International Association of Agricultural Economists, vol. 35(3), pages 319-333, November.
    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.
    9. Sarbajit Chaudhuri & Asis Kumar Banerjee, 2004. "Credit-Product Interlinkage, Captive Markets and Trade Liberalization in Agriculture: A Theoretical Analysis," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 39(2), pages 327-348, July.
    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.
    12. Edmonds, Eric V. & Pavcnik, Nina, 2006. "Trade liberalization and the allocation of labor between households and markets in a poor country," Journal of International Economics, Elsevier, vol. 69(2), pages 272-295, July.
    13. Mayer, Wolfgang, 1984. "Endogenous Tariff Formation," American Economic Review, American Economic Association, vol. 74(5), pages 970-985, December.
    14. Rodrik, Dani, 1998. "Why Is Trade Reform So Difficult in Africa?," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 7(0), pages 43-69, June.
    15. Kym Anderson & John Cockburn & Will Martin, 2010. "Agricultural Price Distortions, Inequality, and Poverty," World Bank Publications, The World Bank, number 2430.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Trade Liberalization; Agricultural Commodity; Household Consumption;

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • F10 - International Economics - - Trade - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:hic:wpaper:182. 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: (Alia Aghajanian) or () or () or (). General contact details of provider: http://www.hicn.org .

    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.