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Welfare Impacts of Import Controls in Botswana's horticulture
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In this paper, an import demand equation is estimated to capture the impact of import controls on horticultural imports (oranges and potatoes) in Botswana. Elasticity estimates are then employed to endogenously compute Nominal Protection Rates (NPRs) and

Research Group
 Incomes, Welfare and Poverty

Date
  26th January 2012

Author
 Tebogo Seleka

Keywords
  Botswana; SACU; Import Restrictions; Welfare Impacts

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In this paper, an import demand equation is estimated to capture the impact of import controls on horticultural imports (oranges and potatoes) in Botswana. Elasticity estimates are then employed to endogenously compute Nominal Protection Rates (NPRs) and to conduct welfare simulations. Model-generated NPRs are recorded at 55 and 118 percent for oranges and potatoes, respectively. Consumer losses from the policy regime have risen over time for both commodities. However, producer gains declined in the case of oranges and marginally rose in the case of potatoes. Quota rents have expanded under both cases, since imports have risen
much faster than domestic production over time. The net loss in social welfare has also risen over time, implying that import controls have become increasingly burdensome over time.


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