IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/1490.html
   My bibliography  Save this paper

System-wide Impacts of Agricultural Export Taxes: A Simulation Experiment with Ethiopian Data

Author

Listed:
  • Gelan, Ayele

Abstract

This paper examines rural-urban spillover effects of agricultural price policy in a developing economy. It employs a computable general equilibrium methodology based on a bi-regional social accounting matrix for Ethiopia. The simulation experiment quantifies system-wide impacts of exports tax on agricultural products. Protecting consumers (particularly urban households), transferring income from producers to consumers, and shifting resources from the agriculture to industry are among the most important motivations cited in the literature for exports tax on agricultural products in developing economies. However, taking inter-regional spill-over effects into account, this study shows that the removal of agricultural export tax does actually improve household welfare both in the rural and urban regions. Also, the elimination of export tax enhances structural transformation of the economy.

Suggested Citation

  • Gelan, Ayele, 2004. "System-wide Impacts of Agricultural Export Taxes: A Simulation Experiment with Ethiopian Data," MPRA Paper 1490, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:1490
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/1490/1/MPRA_paper_1490.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Maurice Schiff & Alberto Valdes, 1994. "The Plundering of Agriculture in Developing Countries," Reports _013, World Bank Latin America and the Caribean Region Department.
    2. World Bank, 2002. "The Federal Democratic Republic of Ethiopia : Developing Exports to Promote Growth," World Bank Publications - Reports 15422, The World Bank Group.
    3. Jeffrey D. Sachs & Andrew Warner, 1995. "Economic Reform and the Process of Global Integration," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1, 25th A), pages 1-118.
    4. Hoff, Karla, 1991. "Land Taxes, Output Taxes, and Sharecropping: Was Henry George Right?," The World Bank Economic Review, World Bank, vol. 5(1), pages 93-111, January.
    5. Skinner, Jonathan, 1991. "If Agricultural Land Taxation Is So Efficient, Why Is It So Rarely Used?," The World Bank Economic Review, World Bank, vol. 5(1), pages 113-133, January.
    6. Gelan, Ayele, 2002. "Trade liberalisation and urban-rural linkages: a CGE analysis for Ethiopia," Journal of Policy Modeling, Elsevier, vol. 24(7-8), pages 707-738, November.
    7. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-142, March.
    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. Amir, Hidayat, 2013. "Economic Impact Analysis of the 2012 Indonesia Mineral-Export Tax Policy: A CGE Approach," MPRA Paper 62669, 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. Black, Jane & de Meza, David, 1997. "Everyone may benefit from subsidising entry to risky occupations," Journal of Public Economics, Elsevier, vol. 66(3), pages 409-424, December.
    2. Haider A. Khan, 2007. "Trade Liberalization and Poverty Reduction in General Equilibrium: The Role of Labor Market Structure," CIRJE F-Series CIRJE-F-462, CIRJE, Faculty of Economics, University of Tokyo.
    3. Chang, Roberto & Kaltani, Linda & Loayza, Norman V., 2009. "Openness can be good for growth: The role of policy complementarities," Journal of Development Economics, Elsevier, vol. 90(1), pages 33-49, September.
    4. Assunção, Juliano Junqueira & Moreira, Humberto Ataíde, 2004. "Land taxes in a Latin American context," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 526, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).
    5. Alessandro Ruggieri, 2019. "Trade and labour market institutions: A tale of two liberalizations," Discussion Papers 2019-15, University of Nottingham, GEP.
    6. Khan, Mahmood Hasan, 2001. "Agricultural taxation in developing countries: a survey of issues and policy," Agricultural Economics, Blackwell, vol. 24(3), pages 315-328, March.
    7. David, Dan Ben & Nordström, Håkan & Winters, L. Alan, 1999. "Trade, income disparity and poverty," WTO Special Studies, World Trade Organization (WTO), Economic Research and Statistics Division, volume 5, number 5.
    8. Pham, Thi Hong Hanh, 2017. "Impacts of globalization on the informal sector: Empirical evidence from developing countries," Economic Modelling, Elsevier, vol. 62(C), pages 207-218.
    9. Catherine Araujo-Bonjean & Gérard Chambas, 2001. "Le paradoxe de la fiscalité agricole en Afrique subsaharienne," Revue Tiers Monde, Programme National Persée, vol. 42(168), pages 773-788.
    10. Headey, Derek & Bezemer, Dirk & Hazell, Peter B., 2008. "Agricultural exit problems: Causes and consequences," IFPRI discussion papers 802, International Food Policy Research Institute (IFPRI).
    11. David, Dan Ben & Nordström, Håkan & Winters, L. Alan, 1999. "Commerce international, disparites des revenues et pauvrete," WTO Special Studies, World Trade Organization (WTO), Economic Research and Statistics Division, volume 5, number 5f.
    12. Richard B. Freeman & David L. Lindauer, 1999. "Why Not Africa?," NBER Working Papers 6942, National Bureau of Economic Research, Inc.
    13. Boeters, Stefan & Savard, Luc, 2013. "The Labor Market in Computable General Equilibrium Models," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 1645-1718, Elsevier.
    14. Bigsten, Arne & Durevall, Dick, 2004. "Kenya’s Development Path and Factor Prices 1964-2000," Working Papers in Economics 142, University of Gothenburg, Department of Economics.
    15. World Bank, 2002. "Long-Term Policy Options for the Palestinian Economy," World Bank Publications - Reports 15274, The World Bank Group.
    16. Michelle Gilmartin & David Learmouth & J Kim Swales & Peter McGregor & Karen Turner, 2013. "Regional Policy Spillovers: The National Impact of Demand-Side Policy in an Interregional Model of the UK Economy," Environment and Planning A, , vol. 45(4), pages 814-834, April.
    17. Arguello, Ricardo & Jimenez, Dora, 2015. "Dutch Disease, Informality, and Employment Intensity in Colombia," Conference papers 332597, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    18. Vieira, Flávio & MacDonald, Ronald & Damasceno, Aderbal, 2012. "The role of institutions in cross-section income and panel data growth models: A deeper investigation on the weakness and proliferation of instruments," Journal of Comparative Economics, Elsevier, vol. 40(1), pages 127-140.
    19. Dowling, Malcolm & Ray, David, 2000. "The structure and composition of international trade in Asia:: historical trends and future prospects," Journal of Asian Economics, Elsevier, vol. 11(3), pages 301-318, December.
    20. Pierre‐Richard Agénor, 2004. "Macroeconomic Adjustment and the Poor: Analytical Issues and Cross‐Country Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 18(3), pages 351-408, July.

    More about this item

    Keywords

    : export tax; rural-urban migration; household welfare; Ethiopia;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • F10 - International Economics - - Trade - - - General
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

    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:pra:mprapa:1490. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.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.