Trade Effects of Export Taxes

Olga Solleder

No 08-2013, IHEID Working Papers from Economics Section, The Graduate Institute of International Studies

Abstract: Export taxes usage has recently risen. They are widely presumed to affect trade, but the lack of data has prevented a systematic evaluation of their trade effects. Based on a new dataset of tax rates at the product level, this paper estimates the distortionary trade effects of export taxes. The results, which are based on theory-consistent estimation of a structural gravity model, indicate that the elasticity of trade quantities to tax is -1.8 on average, rising to -5.5 for extractive sectors. The effects are driven by homogeneous goods. The results suggest that the burden of export taxes is shared by exporters and importers and that export taxes play a role in the rise of world prices.

Keywords: Export taxes; export duties; export restrictions; export policy; trade policy; panel gravity models; GATT/WTO (search for similar items in EconPapers)
JEL-codes: F13 F42 H23 O24 Q37 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2013-04-08
New Economics Papers: this item is included in nep-int and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

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Persistent link: https://EconPapers.repec.org/RePEc:gii:giihei:heidwp08-2013

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