Assessing impacts of declines in the world price of tobacco on China, Malawi, Turkey, and Zimbabwe

This study quantitatively analyzes the general equilibrium effects of declines in world demand for tobacco products. The study finds that tobacco exports and production in the three developing countries, Malawi, Zimbabwe, and Turkey, would be badly hit if world tobacco prices fall due to the decline...

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Autores principales: Diao, Xinshen, Robinson, Sherman, Thomas, Marcelle, Wobst, Peter
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2002
Materias:
Acceso en línea:https://hdl.handle.net/10568/155570
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author Diao, Xinshen
Robinson, Sherman
Thomas, Marcelle
Wobst, Peter
author_browse Diao, Xinshen
Robinson, Sherman
Thomas, Marcelle
Wobst, Peter
author_facet Diao, Xinshen
Robinson, Sherman
Thomas, Marcelle
Wobst, Peter
author_sort Diao, Xinshen
collection Repository of Agricultural Research Outputs (CGSpace)
description This study quantitatively analyzes the general equilibrium effects of declines in world demand for tobacco products. The study finds that tobacco exports and production in the three developing countries, Malawi, Zimbabwe, and Turkey, would be badly hit if world tobacco prices fall due to the decline in tobacco demand. Moreover, for a given decrease in the world tobacco price, the more important the tobacco sector is in an economy, the worse the tobacco sector is hit. Tobacco is quite important to the Malawian and Zimbabwean economies as tobacco production and trade accounted for, respectively, 17% and 43% of agricultural GDP and tobacco exports accounted for 50% and 35% of national exports in these two countries. The negative effects of a decline in world tobacco prices on the Malawian and Zimbabwean economies are much larger than that on the Turkish economy. In the case of China, tobacco production, marketing, cigarette processing, distribution, and foreign trade are strictly controlled by the government and tobacco trade accounted for a small share of production and consumption. Thus, the decline in the world tobacco prices would hardly affect China’s tobacco sector. The study shows that it is highly risky for a developing country to highly depend on exports of a single agricultural commodity. To reduce such risk, a country has to create a more diversified and flexible export structure.
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spelling CGSpace1555702025-11-06T06:23:35Z Assessing impacts of declines in the world price of tobacco on China, Malawi, Turkey, and Zimbabwe Diao, Xinshen Robinson, Sherman Thomas, Marcelle Wobst, Peter equilibrium theory tobacco prices exports developing countries agriculture diversification economic aspects economic situation This study quantitatively analyzes the general equilibrium effects of declines in world demand for tobacco products. The study finds that tobacco exports and production in the three developing countries, Malawi, Zimbabwe, and Turkey, would be badly hit if world tobacco prices fall due to the decline in tobacco demand. Moreover, for a given decrease in the world tobacco price, the more important the tobacco sector is in an economy, the worse the tobacco sector is hit. Tobacco is quite important to the Malawian and Zimbabwean economies as tobacco production and trade accounted for, respectively, 17% and 43% of agricultural GDP and tobacco exports accounted for 50% and 35% of national exports in these two countries. The negative effects of a decline in world tobacco prices on the Malawian and Zimbabwean economies are much larger than that on the Turkish economy. In the case of China, tobacco production, marketing, cigarette processing, distribution, and foreign trade are strictly controlled by the government and tobacco trade accounted for a small share of production and consumption. Thus, the decline in the world tobacco prices would hardly affect China’s tobacco sector. The study shows that it is highly risky for a developing country to highly depend on exports of a single agricultural commodity. To reduce such risk, a country has to create a more diversified and flexible export structure. 2002 2024-10-24T12:42:18Z 2024-10-24T12:42:18Z Working Paper https://hdl.handle.net/10568/155570 en Open Access application/pdf International Food Policy Research Institute Diao, Xinshen; Robinson, Sherman; Thomas, Marcelle; Wobst, Peter. 2002. Assessing impacts of declines in the world price of tobacco on China, Malawi, Turkey, and Zimbabwe. TMD Discussion Paper 91. https://hdl.handle.net/10568/155570
spellingShingle equilibrium theory
tobacco
prices
exports
developing countries
agriculture
diversification
economic aspects
economic situation
Diao, Xinshen
Robinson, Sherman
Thomas, Marcelle
Wobst, Peter
Assessing impacts of declines in the world price of tobacco on China, Malawi, Turkey, and Zimbabwe
title Assessing impacts of declines in the world price of tobacco on China, Malawi, Turkey, and Zimbabwe
title_full Assessing impacts of declines in the world price of tobacco on China, Malawi, Turkey, and Zimbabwe
title_fullStr Assessing impacts of declines in the world price of tobacco on China, Malawi, Turkey, and Zimbabwe
title_full_unstemmed Assessing impacts of declines in the world price of tobacco on China, Malawi, Turkey, and Zimbabwe
title_short Assessing impacts of declines in the world price of tobacco on China, Malawi, Turkey, and Zimbabwe
title_sort assessing impacts of declines in the world price of tobacco on china malawi turkey and zimbabwe
topic equilibrium theory
tobacco
prices
exports
developing countries
agriculture
diversification
economic aspects
economic situation
url https://hdl.handle.net/10568/155570
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