Forster, Felix (2021) Essays in development economics and industrial organisation. PhD thesis, University of Warwick.

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Abstract

This thesis studies three topics in development economics and industrial organisation as summarized below.

Chapter 1 explores the effectiveness of import tariffs to reduce the inflow of old, highly polluting vehicles in low-income countries. Specifically, we estimate the impact on imports and first-time registrations of a stark increase in such a tariff levied on passenger vehicles in Uganda. We find that the levy increase was effective in reducing purchases of the targeted vehicles, but also document unintended substitution from younger towards older vehicles that undermines the policy's objective. Our results point to potential policy improvements and we assess several alternatives through counterfactual simulation.

Chapter 2 investigates the relationship between vehicle demand in low-income countries and the existing vehicle stock, through the availability of spare parts and repair services. We study this \indirect network effect" in the context of the passenger vehicle sector in Uganda. We present a structural model that incorporates the spare part market equilibrium into the consumer choice over vehicles and estimate this model using rich data from administrative records, online platforms, and an original survey of spare parts traders. We find strong evidence in favour of the hypothesized indirect network effect.

Chapter 3 studies how political connections affect the gains from trade liberalization in the context of the removal of import license requirements in Myanmar. We provide evidence that (i) the implementation of the reform protected connected firms and (ii) the presence of connected firms is associated with lower sector growth. A unifying thread among both these findings is the role of entry barriers in the form of economies of scale that seem to protect connected firms from potential competition.

Item Type:	Thesis (PhD)
Subjects:	H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HF Commerce
Library of Congress Subject Headings (LCSH):	Tariff on automobiles -- Environmental aspects, Tariff on automobiles -- Uganda, Automobile industry and trade -- Uganda, Import quotas -- Myanmar, Economic development
Official Date:	June 2021
Dates:	Date Event June 2021 UNSPECIFIED
Institution:	University of Warwick
Theses Department:	Department of Economics
Thesis Type:	PhD
Publication Status:	Unpublished
Sponsors:	University of Warwick. Department of Economics ; The Midlands Graduate School ; Economic and Social Research Council (Great Britain) ; International Growth Centre ; Oxford Policy Management
Format of File:	pdf
Extent:	vi, 140 leaves : illustrations
Language:	eng

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