Export Tax Reform and the Competitiveness of Imported Soybeans in China
Andrew Muhammad () and
Journal of Agricultural and Applied Economics, 2019, vol. 51, issue 3, 511-525
Export tax reform in Argentina could improve its competitiveness in Chinaâ€™s soybean market, displacing exports from competing countries like Brazil and the United States. We examined the factors that determine Chinaâ€™s demand for imported soybean products and how export taxes could affect exporting countries. Using import demand and vector autoregression estimates, we conducted simulations of Chinaâ€™s import demand assuming the elimination of export taxes in Argentina. Results indicated that Argentine soybean products could realize gains in the Chinese market, but only in the short run. Projected import demand changes in the long run were insignificant for all exporting countries.
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