Optimal tariffs with smuggling: A spatial analysis of Nigerian rice policy options

Utilizing a spatial multi-market model for rice in Nigeria that explicitly takes into account the potential for smuggling, in this paper we analyze the welfare implications of alternative rice tariff rates given the government’s goals of spurring domestic production and reducing imports. Because smu...

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Autores principales: Johnson, Michael E., Dorosh, Paul A.
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2015
Materias:
Acceso en línea:https://hdl.handle.net/10568/149935
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author Johnson, Michael E.
Dorosh, Paul A.
author_browse Dorosh, Paul A.
Johnson, Michael E.
author_facet Johnson, Michael E.
Dorosh, Paul A.
author_sort Johnson, Michael E.
collection Repository of Agricultural Research Outputs (CGSpace)
description Utilizing a spatial multi-market model for rice in Nigeria that explicitly takes into account the potential for smuggling, in this paper we analyze the welfare implications of alternative rice tariff rates given the government’s goals of spurring domestic production and reducing imports. Because smuggling occurs through the diversion of imports from Lagos, the official port of entry in the south, to the north, our modeling framework also captures the spatial effects of higher tariffs on changes in rural and urban prices, production and consumption, the flow of trade in rice, and welfare across different parts of the country. Results show that tariff rates that exceed about 40 percent introduce some smuggling of rice through the north when smuggling becomes more profitable than importing through official channels in the south. It is also at this tipping point that government tariff revenues are maximized. At higher tariff rates with smuggling, the south experiences greater welfare losses, especially in urban areas.
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spelling CGSpace1499352025-11-06T06:08:44Z Optimal tariffs with smuggling: A spatial analysis of Nigerian rice policy options Johnson, Michael E. Dorosh, Paul A. models smuggling rice trade barriers trade tariffs Utilizing a spatial multi-market model for rice in Nigeria that explicitly takes into account the potential for smuggling, in this paper we analyze the welfare implications of alternative rice tariff rates given the government’s goals of spurring domestic production and reducing imports. Because smuggling occurs through the diversion of imports from Lagos, the official port of entry in the south, to the north, our modeling framework also captures the spatial effects of higher tariffs on changes in rural and urban prices, production and consumption, the flow of trade in rice, and welfare across different parts of the country. Results show that tariff rates that exceed about 40 percent introduce some smuggling of rice through the north when smuggling becomes more profitable than importing through official channels in the south. It is also at this tipping point that government tariff revenues are maximized. At higher tariff rates with smuggling, the south experiences greater welfare losses, especially in urban areas. 2015-09-02 2024-08-01T02:50:16Z 2024-08-01T02:50:16Z Working Paper https://hdl.handle.net/10568/149935 en https://hdl.handle.net/10568/149936 Open Access application/pdf International Food Policy Research Institute Johnson, Michael E. and Dorosh, Paul A. 2015. Optimal tariffs with smuggling: A spatial analysis of Nigerian rice policy options. NSSP Working Paper 29. Washington, DC: International Food Policy Research Institute. https://hdl.handle.net/10568/149935
spellingShingle models
smuggling
rice
trade barriers
trade
tariffs
Johnson, Michael E.
Dorosh, Paul A.
Optimal tariffs with smuggling: A spatial analysis of Nigerian rice policy options
title Optimal tariffs with smuggling: A spatial analysis of Nigerian rice policy options
title_full Optimal tariffs with smuggling: A spatial analysis of Nigerian rice policy options
title_fullStr Optimal tariffs with smuggling: A spatial analysis of Nigerian rice policy options
title_full_unstemmed Optimal tariffs with smuggling: A spatial analysis of Nigerian rice policy options
title_short Optimal tariffs with smuggling: A spatial analysis of Nigerian rice policy options
title_sort optimal tariffs with smuggling a spatial analysis of nigerian rice policy options
topic models
smuggling
rice
trade barriers
trade
tariffs
url https://hdl.handle.net/10568/149935
work_keys_str_mv AT johnsonmichaele optimaltariffswithsmugglingaspatialanalysisofnigerianricepolicyoptions
AT doroshpaula optimaltariffswithsmugglingaspatialanalysisofnigerianricepolicyoptions