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Optimal Export Taxes, Welfare, Industry Concentration, and Firm Size: A General Equilibrium Analysis

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  • De Santis, Roberto A

Abstract

By using an imperfect-competition model, it is shown that an export tax, optimal in partial equilibrium, is upwardly biased and may not be optimal in a general equilibrium setting with free entry/exit. It is shown also that the export tax has an ambiguous impact on firm size. The results of an applied general equilibrium model for the Turkish economy suggest that the export tax estimated with the PE formula is larger by a small factor than the computed export tax. However, the export tax leads to an increase in firm size and, most importantly, to a social welfare loss. Copyright 2000 by Blackwell Publishing Ltd.

Suggested Citation

  • De Santis, Roberto A, 2000. "Optimal Export Taxes, Welfare, Industry Concentration, and Firm Size: A General Equilibrium Analysis," Review of International Economics, Wiley Blackwell, vol. 8(2), pages 319-335, May.
    • Handle: RePEc:bla:reviec:v:8:y:2000:i:2:p:319-35
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    Cited by:

    1. Piermartini, Roberta, 2004. "The role of export taxes in the field of primary commodities," WTO Discussion Papers 4, World Trade Organization (WTO), Economic Research and Statistics Division.
    2. De Santis Roberto A. & Stähler Frank, 2001. "Trade Policies for Exporting Industries under Free Entry," German Economic Review, De Gruyter, vol. 2(4), pages 327-338, December.
    3. Waschik, Robert & Fraser, Iain, 2007. "A computable general equilibrium analysis of export taxes in the Australian wool industry," Economic Modelling, Elsevier, vol. 24(4), pages 712-736, July.
    4. Reza Oladi & John Gilbert, 2012. "Buyer and Seller Concentration in Global Commodity Markets," Review of Development Economics, Wiley Blackwell, vol. 16(2), pages 359-367, May.
    5. Pothen, Frank & Fink, Kilian, 2015. "A political economy of China's export restrictions on rare earth elements," ZEW Discussion Papers 15-025, ZEW - Leibniz Centre for European Economic Research.

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