Journal ArticleDOI
Second-best foreign exchange policy in the presence of domestic price controls and export subsidies
TLDR
In this article, the effects of different policies on welfare under different foreign exchange elasticities, export and import subsidies, official exchange rates, and policies on exporter retention of foreign exchange earnings were investigated.Abstract:
Poland, like many developing countries, has required its exports to surrender a share of their foreign exchange earnings to the government at an overvalued exchange rate. During the late 1980s, it progressively increased the share which exporters were allowed to retain (the retention ratio), but other distortions to the trade regime remained. A model developed here estimates the effects of these policies on welfare under different foreign exchange elasticities, export and import subsidies, official exchange rates, and policies on exporter retention of foreign exchange earnings. The retention ratios in effect in early 1989 were equivalent to a 51 percent tax on exports or an import tariff of 130 percent. As economic theory would suggest, maximum social benefit would derive from removal of the full range of distortions. Full retention of foreign exchange by exporters in the absence of other distortions would provide social benefits equivalent to 8 percent of gross domestic product. But the net effect of the other policies together is a bias toward tradables, so that a policy of somewhat less than full retention of foreign exchange is optimal in this second-best world.read more
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Distortions to Agricultural Incentives in Asia
Kym Anderson,Will Martin +1 more
TL;DR: In this article, the authors provide an overview of the evolution of the distortions to agricultural incentives caused by price and trade policies in the World Bank defined regions of East Asia and South Asia.
Posted Content
Measuring Distortions to Agricultural Incentives, Revisited
Kym Anderson,Kym Anderson,Kym Anderson,Marianne Kurzweil,Will Martin,Damiano Sandri,Ernesto Valenzuela +6 more
TL;DR: In this article, the authors present estimates of nominal and relative rates of assistance to farmers in China for the period 1981 to 2005; and by summarizing estimates from an economy-wide computable general equilibrium model of the measured distortions globally as of 2004.
Journal ArticleDOI
Methodology for Measuring Distortions to Agricultural Incentives
TL;DR: In this article, the authors outline the methodological issues associated with the task of measuring that actual delivered direct protection or taxation to individual agricultural industries, as well as the direct protection/anti-protection to non-agricultural sectors.
Book
Distortions to Agricultural Incentives in Latin America
Kym Anderson,Alberto Valdes +1 more
TL;DR: In this article, the authors provide an overview of the evolution of distortions to agricultural incentives caused by price and trade policies in the World Bank defined region of Latin America and the Caribbean.
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Consumer's Surplus Without Apology
TL;DR: In this article, it was shown that consumer's surplus can be used to estimate the unobservable compensating and equivalent variations, the correct theoretical measures of the welfare impact of changes in prices and income on an individual.
Journal ArticleDOI
Creating a Market Economy in Eastern Europe: The Case of Poland
TL;DR: In 1989, the political and intellectual leaders of Eastern Europe's revolution of 1989 describe their aim as a "return to Europe" as discussed by the authors, and their overwhelming judgment is that the postwar division of Europe into East and West was artificially imposed by the Soviet Union, at enormous human and economic cost.
Posted Content
Exact Consumer's Surplus and Deadweight Loss
TL;DR: In this paper, it was shown that for the case of a single price change, which is also the situation in which consumer's surplus is often used in applied work, no approximation is necessary.
Book ChapterDOI
Trade Policy and Development
TL;DR: In the nineteenth century, trade has been described as an engine of growth as mentioned in this paper, but changed circumstances and the expansion of protectionism in this century have greatly diminished the transmission effects of trade.