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Optimal Export Taxes with an Endogenous Location
Hong Hwang and Chao-cheng Mai
Southern Economic Journal
Vol. 65, No. 4 (Apr., 1999), pp. 940-952
Published by: Southern Economic Association
Stable URL: http://www.jstor.org/stable/1061286
Page Count: 13
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Export tax policy is one of the most debated issues in many developing countries. Those countries with strong natural advantages in the production of primary commodities, such as agricultural and livestock products, coffee, jute, rubber, and others, have attained at particular times a position as dominant suppliers in international trade. They have often used export taxes on those commodities to obtain foreign exchange and/or government tax revenues. This paper provides a normative analysis to examine how the inclusion of economic space affects export tax policy and to compare optimal export taxes under endogenous location with optimal export taxes under exogenous location, both in the short run and in the long run.
Southern Economic Journal © 1999 Southern Economic Association