The Short-Run Impact of Import Bans on Poverty
2018
Dabalen, Andrew | Nguyen, Nga Thi Viet
The Nigerian government uses food import prohibition as part of policies that seeks to protect existing domestic producers and reduce the country's dependence on imports. This paper argues that such policies have negative effects on net consumers of such products due to higher prices. With 70 percent of poor households' budget spent on food, and about 13 percent of the total budget devoted to products subject to import bans, poor households are vulnerable to such trade policies. Prices of some import prohibited food products are found to be higher than what they would be in the absence of such bans. The elimination of import bans is estimated to reduce national poverty rates by as much as 2.6 percentage points.
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