MEASURING INEFFICIENCY IN THE PRESENCE OF AN EXPORT TAX, AN IMPORT TARIFF, AND A STATE TRADING ENTERPRISE

Agricultural sales cooperative unions (ASCUs) in Turkey are heavily influenced by both domestic and international government policies. Both export taxes and import tariffs are used as policy tools to regulate cotton markets. Domestic price support programs, water subsidies, fertilizer subsidies, and credit subsidies have also been used as domestic policy tools. These types of subsidies are not uncommon among developing countries. This paper provides empirical estimates of the degree of economic inefficiency associated with government intervention in Turkish cotton markets. A two-region partial equilibrium model of cotton exports and imports is developed under the "small country assumption" to obtain empirical estimates of the deadweight welfare loss associated with these government subsidies. Although government intervention results in significant income distribution among the various cotton sectors within Turkey, the overall economic inefficiency of the redistribution is very low.


Issue Date:
2002-04
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/15510
Published in:
Journal of Agricultural and Applied Economics, Volume 34, Number 1
Page range:
81-93
Total Pages:
13




 Record created 2017-04-01, last modified 2017-04-04

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