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What are the consumer welfare effects of tariff increases in South Africa?

This paper investigates how tariffs affect domestic prices of chicken and, through this, household welfare in South Africa. Our choice of chicken was motivated by its importance as a source of protein and the several trade measures applied against chicken meat. We conducted our analysis in two stage...

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Main Author: Mambara, Simbarashe Tinotenda
Other Authors: Edwards, Lawrence
Format: Thesis
Language:English
English
Published: School of Economics 2026
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access_status_str Open Access
author Mambara, Simbarashe Tinotenda
author2 Edwards, Lawrence
author_browse Edwards, Lawrence
Mambara, Simbarashe Tinotenda
author_facet Edwards, Lawrence
Mambara, Simbarashe Tinotenda
author_sort Mambara, Simbarashe Tinotenda
collection Thesis
description This paper investigates how tariffs affect domestic prices of chicken and, through this, household welfare in South Africa. Our choice of chicken was motivated by its importance as a source of protein and the several trade measures applied against chicken meat. We conducted our analysis in two stages. In the first stage, we focused on price transmission, specifically how a change in trade policy affects domestic prices, by estimating the passthrough of chicken duties at a spatial level. We used disaggregated pricing data at the retail level across the entire country. In the second stage, we focused on welfare effects and used micro-level household survey data. Therefore, the welfare impacts depended on the magnitude of pass-through estimated in the first stage. The findings in the first stage showed a high tariff pass-through across provinces, ranging from 0.533 to 0.786. Additionally, we found urban pass-through to be higher than rural pass-through in most of the provinces. In the second stage, we found that the changes in domestic prices of chicken induced by chicken duties were highly regressive and affected poorer and rural households. For example, higher chicken prices caused total household expenditure to increase by 0.3% to 7% across provinces and expenditure decile. Our results can be explained not only in relation to the different incomes of the households, but also by the diverse effects on spatial prices that have resulted from increase in chicken duties.
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institution University of Cape Town (South Africa)
language English
eng
last_indexed 2026-06-10T12:32:09.918Z
license_str Not specified — see source repository
provenance_str_mv Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository
publishDate 2026
publishDateRange 2026
publishDateSort 2026
publisher School of Economics
publisherStr School of Economics
record_format dspace
source_str UCTD — University of Cape Town Open Access Repository
spelling oai:open.uct.ac.za:11427/43171 What are the consumer welfare effects of tariff increases in South Africa? Mambara, Simbarashe Tinotenda Edwards, Lawrence Kamutando, Godfrey Land Reform and Rural Development trade tarrifs This paper investigates how tariffs affect domestic prices of chicken and, through this, household welfare in South Africa. Our choice of chicken was motivated by its importance as a source of protein and the several trade measures applied against chicken meat. We conducted our analysis in two stages. In the first stage, we focused on price transmission, specifically how a change in trade policy affects domestic prices, by estimating the passthrough of chicken duties at a spatial level. We used disaggregated pricing data at the retail level across the entire country. In the second stage, we focused on welfare effects and used micro-level household survey data. Therefore, the welfare impacts depended on the magnitude of pass-through estimated in the first stage. The findings in the first stage showed a high tariff pass-through across provinces, ranging from 0.533 to 0.786. Additionally, we found urban pass-through to be higher than rural pass-through in most of the provinces. In the second stage, we found that the changes in domestic prices of chicken induced by chicken duties were highly regressive and affected poorer and rural households. For example, higher chicken prices caused total household expenditure to increase by 0.3% to 7% across provinces and expenditure decile. Our results can be explained not only in relation to the different incomes of the households, but also by the diverse effects on spatial prices that have resulted from increase in chicken duties. 2026-05-05T11:05:00Z 2026-05-05T11:05:00Z 2023 2026-05-05T10:55:17Z Thesis / Dissertation Masters Masters http://hdl.handle.net/11427/43171 en eng application/pdf School of Economics Faculty of Commerce University of Cape Town
spellingShingle Land Reform and Rural Development
trade
tarrifs
Mambara, Simbarashe Tinotenda
What are the consumer welfare effects of tariff increases in South Africa?
thesis_degree_str Master's
title What are the consumer welfare effects of tariff increases in South Africa?
title_full What are the consumer welfare effects of tariff increases in South Africa?
title_fullStr What are the consumer welfare effects of tariff increases in South Africa?
title_full_unstemmed What are the consumer welfare effects of tariff increases in South Africa?
title_short What are the consumer welfare effects of tariff increases in South Africa?
title_sort what are the consumer welfare effects of tariff increases in south africa
topic Land Reform and Rural Development
trade
tarrifs
url http://hdl.handle.net/11427/43171
work_keys_str_mv AT mambarasimbarashetinotenda whataretheconsumerwelfareeffectsoftariffincreasesinsouthafrica