A Profile of Border Protection in Egypt : An Effective Rate of Protection Approach Adjusting for Energy Subsidies

This study examines recent effective rates of protection across the Egyptian economy, using an ad valorem price wedge introduced by nontariff barriers and energy subsidies, and compares today's effective rates of protection with those of a dec...

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Bibliographic Details
Main Authors:	Valdes, Alberto, Foster, William
Format:	Policy Research Working Paper
Language:	English
Published:	2012
Subjects:	AGRICULTURE ALCOHOLIC BEVERAGES ANIMAL PRODUCTS APPROACH AUTOMOBILE AUTOMOBILES BENCHMARK BORDER PRICES CARS CEMENT COMPETITIVE MARKETS CONSUMER PRICE INDEX CONSUMERS CRUDE OIL DEMAND ELASTICITIES DEVELOPMENT POLICY DIESEL DIESEL ENGINE DIESEL FUELS DIESEL OIL DOMESTIC PRODUCTION ECONOMIC COMPETITIVENESS ECONOMIC SECTORS ELASTICITIES ELECTRICITY ELECTRICITY PRICES EMPLOYMENT ENERGY COSTS ENERGY INPUT ENERGY PRICES ENERGY PRICING ENERGY PRODUCTS ENERGY SOURCES ENERGY SUBSIDIES ENERGY SUBSIDY ENERGY USE ETHYL ALCOHOL EXCLUSION FOOD SUBSIDIES FUEL FUEL OIL FUEL SUBSIDIES GASOLINE GASOLINE SUBSIDIES GDP GROSS OUTPUT GROSS VALUE INTERNAL COMBUSTION INVENTORY LEVEL OF PROTECTION LIMESTONE LOW TARIFFS MACROECONOMIC STABILITY MARGINAL COST MERCHANDISE TRADE MOTOR VEHICLES NATURAL GAS OILS PETROLEUM PETROLEUM PRODUCTS POLITICAL ECONOMY PREFERENTIAL TRADE AGREEMENTS PRICE CHANGES PRICE COMPARISONS PRICE DISTORTIONS PRICE SUBSIDIES PRICES OF ENERGY PROFIT MARGINS RAW MATERIAL RAW MATERIALS SUGAR CANE TARIFF ADJUSTMENT TARIFF BARRIERS TARIFF CHANGES TARIFF LEVELS TARIFF STRUCTURES TAX TAXATION TIRES TOTAL OUTPUT TRADE LIBERALIZATION TRADE POLICY TRADE REFORMS TRADE RESTRICTIONS TRANSPARENCY TRANSPORT TRANSPORT COSTS TRUE VALUE ADDED VALUE OF OUTPUT WIND WORLD TRADE WTO
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110616083750 http://hdl.handle.net/10986/3449

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Summary:	This study examines recent effective rates of protection across the Egyptian economy, using an ad valorem price wedge introduced by nontariff barriers and energy subsidies, and compares today's effective rates of protection with those of a decade ago. The study uses 23 aggregated sectors from input-output matrix information. Although trade liberalization since the late-1990s has had a considerable impact in reducing protection of some industries, some sectors, such as the food and tobacco sector, remain relatively highly protected, due to tariff escalation and nontariff barriers, and due to energy subsidies. Energy subsidies are not formally sector specific but do favor sectors that are energy intensive (of particular note is the electricity sector). It appears that energy pricing is part of a strategy to subsidize and promote certain industries and in effect offset the dis-protection or taxation that results from tariffs on intermediate inputs. The case of the cement sector is notable because energy subsidies appear to almost exactly offset the negative impacts of tariffs and indirect taxes. The fertilizer sector has zero nominal tariffs, benefiting agriculture, and so a negative effective rate of protection due simply to tariffs on intermediate inputs. However, the fertilizer sector ends up with a very high a positive total effective rate of protection due to energy subsidies.