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Export Taxes and Consumption: A �Natural Experiment� from C�te d'Ivoire

Author

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  • Souleymane Soumahoro

    (University of Oklahoma)

Abstract

TI exploit the emergence of two de facto states in C�te d'Ivoire during the 2002-2007 political crisis to examine the effects of an export tax reduction for cocoa beans on the living standards of farming households. Combining both spatial and temporal variations in exposure to a set of dichotomous tariff policies, I find that farmers in low tariff districts significantly increased their consumption expenditure relative to farmers in high tariff districts. I also provide evidence that the transmission of border prices to local farmers is a relevant mechanism through which the reduction of trade barriers enhances cocoa farmers' living standards.

Suggested Citation

  • Souleymane Soumahoro, 2014. "Export Taxes and Consumption: A �Natural Experiment� from C�te d'Ivoire," HiCN Working Papers 182, Households in Conflict Network.
    • Handle: RePEc:hic:wpaper:182
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    Cited by:

    1. Roy Katayama & Andrew Dabalen & Essama Nssah & Guy Morel Amouzou Agbe, 2017. "Welfare and Poverty Impacts of Cocoa Price Policy Reform in Cote d'Ivoire," World Bank Publications - Reports 29625, The World Bank Group.

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    More about this item

    Keywords

    Trade Liberalization; Agricultural Commodity; Household Consumption;
    All these keywords.

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • F10 - International Economics - - Trade - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General

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