Welfare impacts of Indian apple trade policies

Stephen Devadoss and Thomas Wahl

Applied Economics, 2004, vol. 36, issue 12, 1289-1294

Abstract: In April 2000, India eliminated the quantitative import restriction of apples and instituted a trade barrier in the form of lower ad valorem tariffs. This study examines the impacts of Indian trade policies on the apple market by reviewing the government policies, discussing mathematical and graphical analyses of trade policies, presenting estimated equations of demand, supply, and excess supply, and providing solutions of prices, quantities, and welfare impacts under autarky, free trade, and tariff regimes. Given the total population of more than one billion and a vast middle income population, and economic reforms and resulting income growth, India has a considerable potential to increase its apple consumption. Our study shows that under free trade, India will consume 3008 thousand metric tonnes (TMT) of apples of which 2237 TMT will be imported. Also, free trade will increase the total welfare by Rs 29 512 million. These large gains suggest that India should liberalize apple import barriers and move toward free trade.

Date: 2004
References: View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/0003684042000191886 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:applec:v:36:y:2004:i:12:p:1289-1294

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEC20

DOI: 10.1080/0003684042000191886

Access Statistics for this article

Applied Economics is currently edited by Anita Phillips

More articles in Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().