NDLI: Optimal tariffs with smuggling: A spatial analysis of Nigerian rice policy options [Pub: 02-09-2015]

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Optimal tariffs with smuggling: A spatial analysis of Nigerian rice policy options [Pub: 02-09-2015]

Content Provider	Consultative Group on International Agricultural Research (CGIAR)
Author	Johnson, Michael E. Dorosh, Paul A.
Organization	IFPRI - Nigeria Strategy Support Program
Organization	IFPRI - Development Strategy and Governance Division
Spatial Coverage	Nigeria [NG]
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.
Related Links	https://cgspace.cgiar.org/items/5ec12477-be5d-4721-a448-009c68e0b79d
File Format	PDF
Language	English
Publisher	International Food Policy Research Institute
Publisher Date	2015-09-02
Publisher Place	Washington, DC
Access Restriction	Open
Subject Keyword	Policies, Institutions, and Markets Models Smuggling Rice Trade Barriers Trade Tariffs
Content Type	Text
Resource Type	Article
Subject	Agronomy and Crop Science Food Science Plant Science

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