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The Effects of Sectoral and Economy-Wide Policies on Tobacco Production in the Dominican Republic

Published online by Cambridge University Press:  28 April 2015

Pedro Pablo Peña  and
George W. Norton
Pedro Pablo Peña
Affiliation:
Fundacion de Desarrollo Agropecuario, Santo Domingo, The Dominican, department of agricultural economics, Virginia Polytechnic Institute and State University, Blacksburg, Virginia 24061-0401
George W. Norton
Affiliation:
Fundacion de Desarrollo Agropecuario, Santo Domingo, The Dominican, department of agricultural economics, Virginia Polytechnic Institute and State University, Blacksburg, Virginia 24061-0401
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Abstract

This study analyses the effects of specific agricultural and exchange rate policies on tobacco production in the Dominican Republic. Direct protection resulting from output and input subsidies and taxes was positive on average from 1966 to 1988, but total protection was negative when exchange rate policies are considered. Tobacco policies were quite volatile and resulted in increasing production in the 1970s but decreasing production in the 1980s. Overall, tobacco production was 4.8 percent less than it would have been had there been no policy interventions. Several reasons are provided for the policies.

Keywords

Dominican RepublicNominal Rate of Protectiontobacco policies
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 25 , Issue 1 , July 1993 , pp. 151 - 164
Copyright
Copyright © Southern Agricultural Economics Association 1993

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