The impact of export restrictions on production: a synthetic control approach

Garcia-Lembergman, Ezequiel, Rossi, Martin A. and Stucchi, Rodolfo (2020) The impact of export restrictions on production: a synthetic control approach. Economía, 18 (2). 147 - 173. ISSN 1529-7470

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Abstract

In spite of the generalized use of quantitative restrictions on exports, there is little empirical research on their effectiveness to achieve the intended effects of reducing exports, increasing production for the domestic market, and reducing domestic prices. This paper aims at filling this gap by estimating the impact of quantitative restrictions on beef cattle exports in Bolivia, applying a synthetic control approach. Our main finding is that export restrictions have a negative impact not only on total production, but also on production for the domestic market. This fact, together with an increase in the domestic price, is consistent with a supply shift. The fact that export controls can shift supply and actually harm production for the domestic market bears important implications for the design of policies in the future.

Item Type:	Article
Official URL:	https://economia.lse.ac.uk/
Additional Information:	© 2020 LACTEA
Divisions:	LSE
Subjects:	H Social Sciences > HC Economic History and Conditions
JEL classification:	F - International Economics > F1 - Trade > F14 - Country and Industry Studies of Trade O - Economic Development, Technological Change, and Growth > O2 - Development Planning and Policy > O24 - Trade Policy; Factor Movement Policy; Foreign Exchange Policy O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O13 - Agriculture; Natural Resources; Energy; Environment; Other Primary Products
Date Deposited:	03 Sep 2024 15:12
Last Modified:	14 Sep 2024 10:03
URI:	http://eprints.lse.ac.uk/id/eprint/123307

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