Export Taxes and Consumption: A ‘Natural Experiment’ from Côte d'Ivoire

Type Journal Article - HiCN (Households in Conflict Network) Working Paper 182; The Institute of Development Studies - at the University of Sussex
Title Export Taxes and Consumption: A ‘Natural Experiment’ from Côte d'Ivoire
Author(s)
Publication (Day/Month/Year) 2014
URL http://www.hicn.org/wordpress/wp-content/uploads/2012/06/HiCN-WP-182.pdf
Abstract
I exploit the emergence of two de facto states in Côte 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.

Related studies

»
»