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Welfare Impacts of Import Controls in Botswana's Horticulture

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  • Tebogo B. Seleka

    (Botswana Institute for Development Policy Analysis)

Abstract

An import demand equation is estimated to capture the impact of import controls on horticultural imports (oranges and potatoes) in Botswana. Elasticity estimates are then employed to endogenously compute Nominal Protection Rates (NPRs) and to conduct welfare simulations. Model-generated NPRs are recorded at 55 and 118 percent for oranges and potatoes, respectively. Consumer losses from the policy regime have risen over time for both commodities. However, producer gains declined in the case of oranges and marginally rose in the case of potatoes. Quota rents have expanded under both cases, since imports have risen much faster than domestic production over time. The net loss in social welfare has also risen over time, implying that import controls have become increasingly burdensome over time.

Suggested Citation

  • Tebogo B. Seleka, 2005. "Welfare Impacts of Import Controls in Botswana's Horticulture," Working Papers 26, Botswana Institute for Development Policy Analysis.
    • Handle: RePEc:bid:wpaper:26
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    File URL: http://knowledge.bidpa.bw:8080/xmlui/handle/123456789/101
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    References listed on IDEAS

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    1. Tebogo B. Seleka, 2004. "Diversification in Botswana's Agricultural Sector: Issues, prospects and challenges," Books, Botswana Institute for Development Policy Analysis, number 28, december.
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    Cited by:

    1. Naledi C. Modisaatsone & G.R. Motlaleng, 2013. "Impact of exchange rate volatility on Botswana`s imports," E3 Journal of Business Management and Economics., E3 Journals, vol. 4(5), pages 125-138.
    2. Manwa, Farai & Wijeweera, Albert, 2016. "Trade liberalisation and economic growth link: The case of Southern African Custom Union countries," Economic Analysis and Policy, Elsevier, vol. 51(C), pages 12-21.

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    More about this item

    Keywords

    Botswana; Southern African Customs Union; Import restrictions; Welfare impacts;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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