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

Souleymane Soumahoro

No 182, HiCN Working Papers from Households in Conflict Network

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.

Keywords: Trade Liberalization; Agricultural Commodity; Household Consumption (search for similar items in EconPapers)
JEL-codes: D60 F10 O10 Q10 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2014-09
New Economics Papers: this item is included in nep-agr, nep-ger, nep-int and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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