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

40 Pages Posted: 4 Dec 2019 Last revised: 5 Dec 2019

See all articles by Erhan Artuc

Erhan Artuc

World Bank; World Bank - Development Research Group (DECRG)

Guido G. Porto

World Bank; National Bureau of Economic Research (NBER)

Bob Rijkers

World Bank

Date Written: December 3, 2019

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 lower-middle income countries. The data cover highly disaggregated information on household budget and income shares for 53 agricultural products, wage labor income, nonfarm 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.

Keywords: International Trade and Trade Rules, Labor & Employment Law, Food Security, Common Carriers Industry, Food & Beverage Industry, Business Cycles and Stabilization Policies, Plastics & Rubber Industry, Construction Industry, General Manufacturing, Pulp & Paper Industry, Textiles, Apparel & Leather Industry, Trade and Multilateral Issues

Suggested Citation

Artuc, Erhan and Porto, Guido and Rijkers, Bob, Household Impacts of Tariffs: Data and Results from Agricultural Trade Protection (December 3, 2019). World Bank Policy Research Working Paper No. 9045, Available at SSRN: https://ssrn.com/abstract=3498000

Erhan Artuc (Contact Author)

World Bank ( email )

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World Bank - Development Research Group (DECRG)

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Guido Porto

World Bank ( email )

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National Bureau of Economic Research (NBER)

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Bob Rijkers

World Bank ( email )

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Washington, DC 20433
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