Trade effects of export taxes

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.


Publication infos:
Geneva, The Graduate Institute of International and Development Studies, 2013
Publication year:
2013
Number of pages:
35 p.
Collection:
Graduate Institute of International and Development Studies Working Paper ; no 8/2013



 Record created 2013-04-16, last modified 2019-09-03

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