Hostname: page-component-586b7cd67f-2plfb Total loading time: 0 Render date: 2024-11-28T17:02:50.386Z Has data issue: false hasContentIssue false
  • English
  • Français

Measuring Inefficiency in the Presence of an Export Tax, an Import Tariff, and a State Trading Enterprise

Published online by Cambridge University Press:  28 April 2015

Troy G. Schmitz
Troy G. Schmitz*
Affiliation:
Morrison School of Agribusiness and Resource Management at Arizona State University
Get access Rights & Permissions [Opens in a new window]

Abstract

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.

Keywords

export taxtariffagricultural policyTurkeycottonagricultural cooperativeswelfarestate trading enterprises
Type
Original Articles
Information
Journal of Agricultural and Applied Economics , Volume 34 , Issue 1 , April 2002 , pp. 81 - 93
Copyright
Copyright © Southern Agricultural Economics Association 2002

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Ackerman, K.Z., and Dixit, P.M.. An Introduction to State Trading in Agriculture. United States Department of Agriculture, Economic Research Service (USDA-ERS) Agricultural Economic Report Number 783, Washington D.C., October 1999.Google Scholar
Duffy, P.A., and Wohlgenant, M.K.. “Effects of an Export Subsidy on the U.S. Cotton Industry.” Southern J. Agricultural Econ. 23 (December 1991):1–7.Google Scholar
Gürkan, A.A., and Kasnakoglu, H.. “The Political Economics of Agricultural Price Support in Turkey: An Empirical Assessment.” Public Choice 70:277–298. 1991.Google Scholar
Harrison, G., Rutherford, T., and Tarr, D.. “Trade Reform in the Partially Liberalized Economy of Turkey.” World Bank Economic Review 7 (2):191–217. 1993.Google Scholar
Hudson, D. and Etheridge, D.. “Income Distributional Impacts of Trade Policies in a Multi-Market Framework: A Case in Pakistan.” Journal of Agricultural and Applied Economics 32(1), April 2000: 49–62.Google Scholar
Izmir Ticaret Borsasi. “Pamuk Uzerine Teknik ve Istatistiki Arastirmalar Bulteni.” Izmir, Turkey. March 1997.Google Scholar
Just, R.E., Hueth, D.L., and Schmitz, A.. Applied Welfare Economics and Public Policy. Prentice-Hall, Inc. 1982.Google Scholar
Krueger, A. “The Political Economy of Rent Seeking.” American Economic Review Vol. LXIV, (June 1974):291–303.Google Scholar
Mercenier, J. and Yeldan, E.. “On Turkey's Trade Policy: Is a Customs Union with Europe Enough?” Presented at the Annual Meeting of the International Agricultural Trade Research Consortium, Washington D.C., December 1996.Google Scholar
OECD (Office of Economic Cooperation and Development). National Policies and Agricultural Trade: Country Study, Turkey. OECD. Paris, France, 1994.Google Scholar
Olgun, H. “Some Aspects and Consequences of the Agricultural Price Interventions in Turkey.” European Review of Agricultural Economics 15(3):391–410. 1989.Google Scholar
Schmitz, A., Cakmak, E., Schmitz, T.G., and Gray, R.. Policy, State Trading, and Cooperatives in Turkish Agriculture. Agricultural Economics Research Institute, Project Report 1999-1, Publication No.13, Ankara Turkey, February 1999.Google Scholar
Schmitz, A., Furtan, H., and Baylis, K.. “State Trading and The Upcoming WTO Discussions.” Choices Second Quarter (1999): 30–33.Google Scholar
Schmitz, A., Sigurdson, D., and Doering, O.. “Domestic Farm Policy and the Gains from Trade.” American Journal of Agricultural Economics 68 (November 1986): 820–27.CrossRefGoogle Scholar
Schmitz, T.G., Schmitz, A., and Dumas, C.. “Gains from Trade, Inefficiency of Government Programs and the Net Economic Effects of Trading.” Journal of Political Economy (April 1997): 637–48.Google Scholar
United States General Accounting Office (GAO). “State Trading Enterprises: Compliance with the General Agreement on Tariffs and Trade.” GAO/GGD-95-208, Washington D.C., August 1995.Google Scholar