1887

n Agrekon - Costs and benefits of higher tariffs on wheat imports to South Africa

Volume 47, Issue 1
  • ISSN : 0303-1853
  • E-ISSN: 2078-0400
This article is unavailable for purchase outside of Africa

 

Abstract

Low international wheat prices, caused by tariffs and subsidies in developed countries, have been blamed for causing financial difficulty to South African farmers. While indignation at unfair trade practices may be valid, it does not necessarily follow that protection of the local industry is the best response. This study uses a static general equilibrium model to describe and quantify the effects of increased tariffs (by up to 25 percentage points) on the local wheat industry, other affected industries - particularly downstream industries - and the economy at large. The effects on factors, households and the government are also analysed. The results show that the benefits to the wheat industry are highly concentrated and smaller than the loss of income caused in other sectors. Welfare is negatively affected, especially for low-income households, for whom the effects are exacerbated by increases in relative food prices.

Loading full text...

Full text loading...

Loading

Article metrics loading...

/content/agrekon/47/1/EJC18386
2008-03-01
2019-09-16

This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error