A Dynamic Analysis of the Impacts of Export Taxes: The Case of Argentinean Soy and Beef Markets

25 Pages Posted: 7 Jun 2020

See all articles by Stephen Devadoss

Stephen Devadoss

University of Idaho - Department of Agricultural Economics

Jeff Luckstead

University of Arkansas

William Ridley

University of Colorado at Boulder - Department of Economics

Date Written: August 2019

Abstract

Argentina plays an important role in the global soy market as one of the world's leading exporters of soy products. In an effort to shift its agricultural sector's focus to value‐added exports and to raise revenue, Argentina's government has maintained a regime of differential export taxes on soy products. In addition to soy products, Argentina is a major producer, consumer and exporter of beef. However, over the last decade it has relinquished much of its world market share as its beef exports have fallen because the government has periodically imposed a ban on exports of beef along with maintaining an export tax. As the soy and livestock sectors are inextricably linked, owing to both industries’ intensive land use and the utilisation of soymeal as a feed supplement for cattle, trade policies in one sector have pronounced cross‐sectoral impacts. This study develops a theoretical model of these different sectors and trade policies, incorporating the dynamic decisions of cattle stock management. The model is calibrated to real‐world data on the Argentinean economy, and the impacts of trade liberalisation are quantified. Key results show modelling the various intersectoral linkages and the dynamic implications of cattle stock is essential for obtaining accurate estimates.

Keywords: Argentina, export taxes, livestock, soy, value chains

Suggested Citation

Devadoss, Stephen and Luckstead, Jeff and Ridley, William, A Dynamic Analysis of the Impacts of Export Taxes: The Case of Argentinean Soy and Beef Markets (August 2019). The World Economy, Vol. 42, Issue 8, pp. 2427-2451, 2019, Available at SSRN: https://ssrn.com/abstract=3620952 or http://dx.doi.org/10.1111/twec.12799

Stephen Devadoss (Contact Author)

University of Idaho - Department of Agricultural Economics ( email )

Box 442334
Moscow, ID 83844-2334
United States
208-885-6806 (Phone)
208-885-5759 (Fax)

Jeff Luckstead

University of Arkansas

Fayetteville, AR 72701
United States

William Ridley

University of Colorado at Boulder - Department of Economics

Campus Box 256
Boulder, CO 80309
United States

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