Potential Trade Distortion Effects of State Trading Enterprises under the Tariff-Rate Quota Scheme
- Authors
- Yoon, Jung-Hyun; Lim, Song Soo
- Issue Date
- 25-7월-2013
- Publisher
- KIEL INST WORLD ECONOMY
- Keywords
- State trading enterprises; tariff-rate quotas; tariff equivalents; soybeans; sensitive products
- Citation
- ECONOMICS-THE OPEN ACCESS OPEN-ASSESSMENT E-JOURNAL, v.7
- Indexed
- SSCI
SCOPUS
- Journal Title
- ECONOMICS-THE OPEN ACCESS OPEN-ASSESSMENT E-JOURNAL
- Volume
- 7
- URI
- https://scholar.korea.ac.kr/handle/2021.sw.korea/102674
- DOI
- 10.5018/economics-ejournal.ja.2013-31
- ISSN
- 1864-6042
- Abstract
- The paper analyzes the potential trade distortion effects of state trading enterprises (STEs) on soybean imports to Korea. Traditionally, STEs have exercised exclusive rights to import the so-called strategic products, to ensure food security, domestic price stabilization, and import mark-ups. However, STE imports have been criticized on the grounds that industries using soybeans as a raw material are unable to obtain a diverse mix of quality material and cannot exercise the "right to choose" their own ingredients. Under a theoretical framework, a tariff equivalent of the STE is postulated to equate imports by private firms with imports by the STE. An empirical model is constructed and estimated using annual data spanning 1980-2009. The estimated results show that providing exclusive rights to imports has a negative effect on market access. When the STE pursues consumer welfare, the import-reducing effect turns out to be smaller than that in the producer welfare maximization case.
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Collections - College of Life Sciences and Biotechnology > Department of Food and Resource Economics > 1. Journal Articles
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