Impact of domestic content requirement on the US tobacco and cigarette industries

Using a log-linear equilibrium displacement model we quantify the impact of the recent domestic tobacco content requirement on US cigarette manufacturing. We investigate effects on US growers and manufacturers, and competing tobacco imports. The policy increased domestic use of US-grown tobacco, but induced a small negative output effect. Tobacco imports decreased substantially. The paper also discusses the political-economic incentives for US manufacturers to comply with such policies. The political cooperation between US growers and manufacturers decreases the opposition of the latter to protectionist policies championed by the former.


Issue Date:
1997-01
Publication Type:
Journal Article
Record Identifier:
http://ageconsearch.umn.edu/record/174030
PURL Identifier:
http://purl.umn.edu/174030
Published in:
Agricultural Economics: The Journal of the International Association of Agricultural Economists, Volume 15, Issue 3
Page range:
201-212
Total Pages:
12




 Record created 2017-04-01, last modified 2018-01-22

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)