Abstract:
An import demand equation is estimated to capture the impact of import controls
on horticultural imports (oranges and potatoes) in Botswana. Elasticity esti mates 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.
