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The Trade and Health Effects of Tobacco Regulations

Author

Listed:
  • Gregmar Galinato
  • Aaron Olanie
  • Jon Yoder

    () (School of Economic Sciences, Washington State University)

Abstract

This paper examines how domestic and foreign tobacco regulations affect tobacco trade flows and consumer health in importing countries. We develop a gravity equation incorporating domestic and foreign tobacco regulations into a country’s tobacco import demand. We estimate the bilateral trade effects of marketing, counter-advertising, age and smoking tobacco location regulations. There are two striking results: smoking location regulations reduce tobacco exports and imports, and marketing regulations may actually increase tobacco trade. The magnitude of these effects is larger when the trading partners are rich exporters and poor importers. Using existing health effect elasticities in conjunction with our results, we show how these changes affect tobacco-related mortality and morbidity in importing countries. Our results highlight the importance of implementing policies that account for potential spillover effects in an increasingly multilateral economy.

Suggested Citation

  • Gregmar Galinato & Aaron Olanie & Jon Yoder, 2013. "The Trade and Health Effects of Tobacco Regulations," Working Papers 2013-09, School of Economic Sciences, Washington State University.
  • Handle: RePEc:wsu:wpaper:galinato-9
    as

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    File URL: http://faculty.ses.wsu.edu/WorkingPapers/Galinato/WP2013-9.pdf
    File Function: First version, 2013
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    References listed on IDEAS

    as
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. #HEJC papers for October 2013
      by academichealtheconomists in The Academic Health Economists' Blog on 2013-10-01 04:30:26

    More about this item

    Keywords

    bilateral trade effect; gravity model; tobacco regulation; mortality;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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