The methodologies of the studies - Institutional Constraints to Small Farmer Development in Southern Africa - page 308

Price

S=MB

A

B

C

P d =P w+t

E

H

P w

D F G

D=MC

S 1

S 2 D 2 D 1

Quantity

Figure A4.1. Welfare effects of tariffs on small country

Table A4.1. Summary of welfare effects import tariff for a small importing country (Reed, 2001).

Graphically

Consumer surplus (negative) ACHD

Producer surplus ABED

Government revenues BCGF

National welfare (negative) BFE and CGH

Table A4.2. Methodological framework to calculate the welfare effects of a tariff (Tsakok, 1990).

Deadweight loss in production 0.5×e s ×t' 2 ×V' NEL P

Deadweight in consumption in d ×t' 2 ×W' NEL c

WG p Change in producer surplus t'V'-NEL p

WG c Change in consumer surplus -(t'W'+NEL c )

∆GR Change in revenue t'(W'-V')

Loss/capita Loss per capita WG c / total population