Potential trade distortion effects of state trading enterprises under the tariff-rate quota scheme
The paper analyzes the potential trade distortion effects of state trading enterprises (STEs) on soybean imports to Korea. Traditionally, STEs have exercised exclusive rights to import the so-called strategic products, to ensure food security, domestic price stabilization, and import mark-ups. However, STE imports have been criticized on the grounds that industries using soybeans as a raw material are unable to obtain a diverse mix of quality material and cannot exercise the right to choose their own ingredients. Under a theoretical framework, a tariff equivalent of the STE is postulated to equate imports by private firms with imports by the STE. An empirical model is constructed and estimated using annual data spanning 1980-2009. The estimated results show that providing exclusive rights to imports has a negative effect on market access. When the STE pursues consumer welfare, the import-reducing effect turns out to be smaller than that in the producer welfare maximization case.
|Date of creation:||2013|
|Contact details of provider:|| Postal: Kiellinie 66, D-24105 Kiel|
Phone: +49 431 8814-1
Fax: +49 431 8814528
Web page: http://www.economics-ejournal.org/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dixit, Praveen M. & Josling, Timothy E., 1997. "State Trading In Agriculture: An Analytical Framework," Working Papers 14608, International Agricultural Trade Research Consortium.
- Philip C. Abbott & Linda M. Young, 1999. "Wheat-Importing State Trading Enterprises: Impacts on the World Wheat Market," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 47(2), pages 119-136, 07.
- Steve McCorriston & Donald MacLaren, 2008. "State Trading Enterprises as an Impediment to Improved Market Access: The Case of the Korean Rice Market," Review of International Economics, Wiley Blackwell, vol. 16(3), pages 431-443, 08.
- Steve McCorriston & Donald MacLaren, 2002. "State Trading, the WTO and GATT Article XVII," The World Economy, Wiley Blackwell, vol. 25(1), pages 107-135, 01.
- Laroche Dupraz, Catherine & Matthews, Alan, 2007. "A graphical analysis of the functioning of tariff rate quotas: market access and welfare effects for exporting countries," Working Papers 7210, TRADEAG - Agricultural Trade Agreements.
- McCorriston, Steve & MacLaren, Donald, 2005. "The trade distorting effect of state trading enterprises in importing countries," European Economic Review, Elsevier, vol. 49(7), pages 1693-1715, October.
When requesting a correction, please mention this item's handle: RePEc:zbw:ifwedp:201322. 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: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.