Aiming to support downstream cocoa processing industries, the Indonesian Government announced an export tax on cocoa beans in 2010. This paper investigates whether the Indonesian Government has imposed an optimal tax rate and examines the determinants of cocoa bean export growth using data from Ivory Coast, Ghana and Indonesia for 1970-2011 and applying a vector error correction model. This study highlights the interdependence of major cocoa exporting countries' policy and reveals that Indonesia currently imposes a tax rate that is above its optimal rate.
The Thai Government introduced a generous price support program for paddy rice in 2011. The policy terminated in mid 2014 with the dismissal of the democratically elected Prime Minister, Ms Yingluck Shinawatra. There is an interest in understanding the welfare effects of the policy given the ongoing civil suit put against the former Prime Minister and the large stocks that remain. This study therefore analyses the welfare effects of various Thai rice policy options using a 10-region, dynamic, stochastic, partial equilibrium model of world rice trade. It finds that while the Thai policy was effective in supporting the incomes of rice producers in the short run, the burden imposed on taxpayers and consumers seems difficult to justify.JEL classifications: Q17, Q18
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