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The impact of export restrictions on production: a synthetic control approach

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  • Garcia-Lembergman, Ezequiel
  • Rossi, Martin A.
  • Stucchi, Rodolfo

Abstract

In spite of the generalized use of quantitative restrictions on exports, there is little empirical research on their effectiveness to achieve the intended effects of reducing exports, increasing production for the domestic market, and reducing domestic prices. This paper aims at filling this gap by estimating the impact of quantitative restrictions on beef cattle exports in Bolivia, applying a synthetic control approach. Our main finding is that export restrictions have a negative impact not only on total production, but also on production for the domestic market. This fact, together with an increase in the domestic price, is consistent with a supply shift. The fact that export controls can shift supply and actually harm production for the domestic market bears important implications for the design of policies in the future.

Suggested Citation

  • Garcia-Lembergman, Ezequiel & Rossi, Martin A. & Stucchi, Rodolfo, 2020. "The impact of export restrictions on production: a synthetic control approach," LSE Research Online Documents on Economics 123307, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:123307
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    Cited by:

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    2. Miranda Svanidze & Linde Götz & Dmytro Serebrennikov, 2022. "The influence of Russia's 2010/2011 wheat export ban on spatial market integration and transaction costs of grain markets," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(2), pages 1083-1099, June.
    3. Nicolás Oviedo, 2022. "Deficit fiscal y tipo de cambio fijo: racionalizando una combinación insostenible," Young Researchers Working Papers 3, Universidad de San Andres, Departamento de Economia, revised Oct 2022.
    4. David Gilchrist & Thomas Emery & Nuno Garoupa & Rok Spruk, 2023. "Synthetic Control Method: A tool for comparative case studies in economic history," Journal of Economic Surveys, Wiley Blackwell, vol. 37(2), pages 409-445, April.
    5. Coelho dos Santos, Marcelo Bittencourt & Klotzle, Marcelo Cabus & Baptista Palazzi, Rafael, 2024. "The effect of oil discovery in Brazil: A synthetic control approach," Resources Policy, Elsevier, vol. 92(C).

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    More about this item

    Keywords

    production; export controls; export restrictions; trade policy; synthetic controls;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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