Trade and Efficiency Effects of Domestic Content Protection The Australian Tobacco and Cigarette Industries

John Beghin () and C. Lovell

No 259513, Archive from North Carolina State University, Department of Agricultural and Resource Economics

Abstract: This paper provides an empirical investigation of the international trade and domestic market efficiency effects of physical domestic content requirement in the Australian tobacco leaf growing and cigarette manufacturing industries. Our empirical evidence suggests. that the content requirement has distorted trade by restricting leaf imports. Nevertheless, the data are also consistent with the efficient contract hypothesis. The mix of domestic to imported leaf used in cigarette manufacturing depends on domestic leaf production costs and on world leaf prices but not on the negotiated domestic leaf price.

Keywords: Agribusiness; Crop Production/Industries; International Relations/Trade (search for similar items in EconPapers)
Pages: 37
Date: 1991-04-01
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https://ageconsearch.umn.edu/record/259513/files/magr-northcarolinastate-043.pdf (application/pdf)

Related works:
Journal Article: Trade and Efficiency Effects of Domestic Content Protection: The Australian Tobacco and Cigarette Industries (1993)
Working Paper: Trade and Efficiency Effects of Domestic Content Protection: The Australian Tobacco and Cigarette Industries (1993)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ncarar:259513

DOI: 10.22004/ag.econ.259513

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