The impact of export restrictions on production: a synthetic control approach

Ezequiel Garcia-Lembergman, Martín Rossi and Rodolfo Stucchi

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: In spite of the generalized use of quantitative restrictions on exports, there is little empirical research on their effectiveness to achieve the intended effects of reducing exports, increasing production for the domestic market, and reducing domestic prices. This paper aims at filling this gap by estimating the impact of quantitative restrictions on beef cattle exports in Bolivia, applying a synthetic control approach. Our main finding is that export restrictions have a negative impact not only on total production, but also on production for the domestic market. This fact, together with an increase in the domestic price, is consistent with a supply shift. The fact that export controls can shift supply and actually harm production for the domestic market bears important implications for the design of policies in the future.

Keywords: production; export controls; export restrictions; trade policy; synthetic controls (search for similar items in EconPapers)
JEL-codes: F14 O13 O24 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2020-04-01
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Published in Economía, 1, April, 2020, 18(2), pp. 147 - 173. ISSN: 1529-7470

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http://eprints.lse.ac.uk/123307/ Open access version. (application/pdf)

Related works:
Journal Article: The Impact of Export Restrictions on Production: A Synthetic Control Approach (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:123307

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