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Income Distributional Impacts of Trade Policies in a Multi-Market Framework: A Case in Pakistan

Published online by Cambridge University Press:  28 April 2015

Darren Hudson  and
Don Ethridge
Darren Hudson
Affiliation:
Department of Agricultural Economics, Mississippi State University, and chairman and professor, Department of Agricultural and Applied Economics, Texas Tech University
Don Ethridge
Affiliation:
Department of Agricultural Economics, Mississippi State University, and chairman and professor, Department of Agricultural and Applied Economics, Texas Tech University
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Abstract

The impacts of using export taxes as a price control in a multi-market framework are explored using the cotton and yarn sectors in Pakistan as examples. Results show that the export tax on cotton increased domestic consumption and decreased exports of cotton in Pakistan, transferring income from cotton producers to yarn spinners and the government. There was a social loss to Pakistan in the cotton sector. The export tax on cotton increased domestic yarn production, consumption, exports, and incomes of yarn spinners, but resulted in a large transfer (social loss) out of the yarn sector.

Keywords

cottonexport taxsimultaneous equationssimulationpolicy
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 32 , Issue 1 , April 2000 , pp. 49 - 61
Copyright
Copyright © Southern Agricultural Economics Association 2000

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