On September 28, 2006, Ukrainian government introduced licensing of
grain exports, which was afterwards replaced with a quota system.
The paper adopts the partial equilibrium analysis for empirical
evaluation of the effect of export quotas and taxes with 5%, 10%,
15% and 20% rates under the assumption of a "small" county case.
For this purpose the paper provides the required domestic demand
and supply, and import demand elasticities. On the basis of the
estimated price elasticities a quantitative estimation is conducted
on the welfare effects of wheat producers, consumers, the
government and the country as a whole. The econometric results
demonstrate that export quotas are not desirable for national
welfare, and export taxes are sound alternatives.
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