Influence of Export Regulations on Domestic Livestock Prices in Chad

Abstract

Purpose: The aim of the study was to assess the influence of export regulations on domestic livestock prices in Chad.

Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries.

Findings: The study indicated that stringent export regulations often lead to reduced supply in domestic markets, creating a shortage that drives prices upwards. For instance, in economies with robust export regulations on livestock products, such as meat and dairy, domestic prices tend to escalate due to limited availability for local consumers. This trend is particularly pronounced in developing economies where export restrictions aim to secure domestic food supply and stabilize prices but inadvertently lead to higher consumer costs and reduced access. Conversely, relaxed export regulations can have contrasting effects. Countries that ease export restrictions may experience an increase in export volumes, thereby reducing domestic supply and potentially lowering domestic prices due to surplus on the global market. This scenario can benefit consumers through more affordable prices but poses challenges for local producers reliant on stable pricing mechanisms. Overall, the influence of export regulations on domestic livestock prices underscores the delicate balance policymakers must strike between safeguarding local food security and managing market dynamics to ensure affordability and profitability across the agricultural sector.

Implications to Theory, Practice and Policy: Trade liberalization theory, export tax incidence theory and regulatory capture theory may be used to anchor future studies on assessing the influence of export regulations on domestic livestock prices in Chad. A practical recommendation is to establish robust market intelligence systems that enable real-time monitoring of global market trends, trade policies, and competitor activities. In terms of policy implications, advocating for flexible and adaptive export policies is essential.