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Export taxes, food prices and poverty: a global CGE evaluation

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  • Jayson Beckman

    (Economic Research Service)

  • Carmen Estrades

    (Universidad de la República)

  • Angel Aguiar

    (Purdue University)

Abstract

Export restrictions, such as export taxes, have increased over the last ten years. In addition, export taxes often occur when food prices are high and/or volatile. As such, export taxes have received a lot of attention in the literature, but these studies tend to examine only a single commodity or country. This study seeks to provide more detail into the linkages among export taxes, trade, food prices, and poverty by utilizing a global economic model with detail on export tax occurrence in agriculture. Results show that export taxes do not have a widespread impact on international agricultural prices, but rather that the impact is concentrated in few goods: wheat, coarse grains, and beef. Removing export taxes would benefit regions currently applying taxes through an increase in production and exports and a reduction in poverty. In other regions, which are major agricultural exporters, an increase in competition of exports in international markets could lead to a fall in domestic prices. Our analysis does not find a significant impact of export tax removal on poverty, except among some export tax imposing countries for which poverty falls as a consequence of the removal of export taxes. These results highlight the need to consider the general equilibrium effects of the removal of export taxes.

Suggested Citation

  • Jayson Beckman & Carmen Estrades & Angel Aguiar, 2019. "Export taxes, food prices and poverty: a global CGE evaluation," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 11(1), pages 233-247, February.
    • Handle: RePEc:spr:ssefpa:v:11:y:2019:i:1:d:10.1007_s12571-018-0876-2
    DOI: 10.1007/s12571-018-0876-2
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    References listed on IDEAS

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    Cited by:

    1. Estrades, Carmen & Beckman, Jayson & Aguiar, Angel, 2019. "Estimating the impact of quantitative export restrictions on agricultural trade and prices," Conference papers 333108, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Beckman, Jayson, 2021. "Reforming Market Access in Agricultural Trade: Tariff Removal and the Trade Facilitation Agreement," USDA Miscellaneous 310408, United States Department of Agriculture.
    3. Michał Przybyliński & Artur Gorzałczyński, 2022. "Applying the input–output price model to identify inflation processes," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 11(1), pages 1-11, December.
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    5. Yoji Kunimitsu & Gen Sakurai & Toshichika Iizumi, 2020. "Systemic Risk in Global Agricultural Markets and Trade Liberalization under Climate Change: Synchronized Crop-Yield Change and Agricultural Price Volatility," Sustainability, MDPI, vol. 12(24), pages 1-17, December.

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