Household Impacts of Tariffs: Data and Results from Agricultural Trade Protection

Author:

Artuc Erhan1,Porto Guido2,Rijkers Bob1

Affiliation:

1. Development Economics Research Group, Trade and Integration, The World Bank, Washington, DC

2. Universidad Nacional de la Plata, Departamento de Economia, Calle 6 e/ 47 y 48, 1900 La Plata, Argentina

Abstract

Abstract How do trade reforms impact households in different parts of the income distribution? This paper presents a new database, the Household Impacts of Tariffs data set, which contains harmonized household survey and tariff data for 54 low- and middle-income countries. The data cover highly disaggregated information on household budget and income shares for 53 agricultural products, wage labor income, non-farm enterprise sales and transfers, as well as spending on manufacturing and services. Using a stylized model of the first-order impacts of import tariffs on household real income, this paper quantifies the welfare implications of agricultural trade protection. On average, unilateral elimination of agricultural tariffs would increase household incomes by 2.50 percentage points. Import tariffs have highly heterogeneous effects across countries and within countries across households, consumers, and income earners; the average standard deviation of the gains from trade within a country is 1.01 percentage points.

Publisher

Oxford University Press (OUP)

Subject

Economics and Econometrics,Finance,Development,Accounting

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