Rice imports, prices, and challenges for trade policy
2016
Dorosh, Paul A. | Malek, Mehrab
The objective of this chapter is to analyze Nigeria's recent rice import policies in terms of their effectiveness and tradeoffs with regard to affecting the volume of imports, domestic prices, and tariff revenues in the country. More specifically, we present an analysis of Nigeria's international rice trade, covering international market price and quantity evidence, Nigeria's trade (and exchange-rate) policy, and the effectiveness of tariffs in influencing rice imports and domestic prices of imported and local rice. We begin by presenting various estimates of the volume of rice imports, including estimates derived from data on rice-exporting countries, which show that official figures for imports have substantially understated actual imports. Next, we discuss the price incentives for imports, as determined by exchange-rate and rice trade policy (import tariffs and periodic import bans). Price distortions created by these policies are summarized in calculations of nominal rates of protection. We also analyze the relationship between the estimated import parity price and domestic prices of imported rice and local rice. The chapter concludes by providing a brief summary of findings.
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