Chapter 4


Table 4.13: Direct, indirect and total nominal protection rates of agriculture, by region,
 1960-84, (percent)

 [+ve indicates protection, -ve taxation]
 Direct Direct
Region Indirect Direct Total protection of protection of
 protection protection importables exportables
Asial) -22.9 -2.5 -25.2 22.4 -14.6
Latin America2) -21.3 -6.4 -27.8 13.2 -6.4
Mediterranean3) -18.9 -6.4 -25.2 3.2 -11.8
Sub-Saharan Africa4) -28.6 -23.0 -51.6 17.6 -20.5

1) Republic of Korea, Malaysia, Pakistan, Philippines, Sri Lanka, Thailand.
2) Argentina, Brazil, Chile, Colombia, Dominican Republic.
3) Egypt, Morocco, Portugal, Turkey.
4) C6te d'lvoire, Ghana, Zambia.
Source: Krueger, A. op. cit.

Table 4.14: Direct, indirect and total nominal protection rates for agricultural products
 Selected countries, selected years, average for period, in percent

 Staples Importables Exportables
Country and period Direct Totall) Direct Totall) Direct Total I)
Zambia, 1966-84 -16.4 -46.3 -16.4 -46.3 -3.1 -33.0
Ghana, 1958-76 46.4 13.8 42.9 10.3 -29.8 -62.4
Pakistan, 1960-86 0.6 -32.5 -6.9 -40.0 -5.6 -38.7
C6te d'lvoire, 1960-82 26.2 2.9 26.2 2.9 -28.7 -52.0
Morocco, 1963-84 -15.0 -32.4 -8.2 -25.6 -18.5 -35.9
Dominican Rep. 1966-85 -18.3 -39.6 19.0 -2.3 -24.8 -46.1
Philippines, 1960-86 -4.6 -27.9 17.4 -5.9 -11.2 -34.5
Colombia, 1960-83 9.9 -15.3 14.5 -10.6 -8.5 -33.7
Egypt, 1960-84 -24.4 -44.0 -5.1 -24.7 -32.8 -51.9

1) The sum of direct and indirect protection rates. (For indirect protection rates see Table 4.3).
Source: Krueger, A. op. cit.

Table 4.13 provides evidence on the following issues:

* In all regions, direct protection (through trade, market and price policies) on importables
 was positive on average, while it was negative (taxation) for exportables.

* Direct tax on exportables dominated direct protection on importables in all regions,
 resulting in a net direct taxation of the agricultural sector as a whole. With a value of-23,
 direct taxation of the agricultural sector was largest in Sub-Saharan Africa.

 The rate of indirect taxation (due to currency over-valuation and industrial protection)
 was large in all regions, and again largest in Sub-Saharan Africa.

 Total taxation of the agricultural sector exceeds 25 percent in all regions and 50 percent
 in the case of Sub-Saharan Africa.


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