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Protectionism, Evasion and Household Welfare : Evidence from Nigeria’s Import Bans

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  • Artuc, Erhan
  • Falcone, Guillermo Enrique
  • Porto, Guido
  • Rijkers, Bob

Abstract

This paper analyzes the welfare impacts of import bans in Nigeria and how these impacts are shaped by evasion. Bans were not effectively enforced, thus fostering informal trade. The imposition of bans nonetheless increased consumer prices by 9.9 percent on average. However, price increases were substantially attenuated for goods for which trade policy is harder to enforce. Import bans disproportionately hurt richer households, who likewise disproportionately benefit from evasion.

Suggested Citation

  • Artuc, Erhan & Falcone, Guillermo Enrique & Porto, Guido & Rijkers, Bob, 2025. "Protectionism, Evasion and Household Welfare : Evidence from Nigeria’s Import Bans," Policy Research Working Paper Series 11195, The World Bank.
    • Handle: RePEc:wbk:wbrwps:11195
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    References listed on IDEAS

    as
    1. Céline Carrère & Christopher Grigoriou, 2014. "Can Mirror Data Help To Capture Informal International Trade?," UNCTAD Blue Series Papers 65, United Nations Conference on Trade and Development.
    2. Sami Bensassi & Joachim Jarreau, 2019. "Price discrimination in bribe payments: Evidence from informal cross-border trade in West Africa," Post-Print hal-02390008, HAL.
    3. Demir, Banu & Javorcik, Beata, 2020. "Trade policy changes, tax evasion and Benford's law," Journal of Development Economics, Elsevier, vol. 144(C).
    4. Bensassi, Sami & Jarreau, Joachim, 2019. "Price discrimination in bribe payments: Evidence from informal cross-border trade in West Africa," World Development, Elsevier, vol. 122(C), pages 462-480.
    5. Douglas A. Irwin, 2019. "Does Trade Reform Promote Economic Growth? A Review of Recent Evidence," Working Paper Series WP19-9, Peterson Institute for International Economics.
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