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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. Jayson Beckman & Noé J. Nava & Angelica S. Williams & Steven Zahniser, 2024. "Land competition and welfare effects from Mexico's proposal to ban genetically engineered corn," American Journal of Agricultural Economics, John Wiley & Sons, vol. 106(3), pages 1300-1325, May.
    3. 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.
    4. Beckman, Jayson, 2021. "Reforming Market Access in Agricultural Trade: Tariff Removal and the Trade Facilitation Agreement," USDA Miscellaneous 310408, United States Department of Agriculture.
    5. 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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