Adverse welfare effects of regulations on small tobacco exporters: the case of Zimbabwe

Abstract

Regulations to reduce the consumption of tobacco products have dual effects on economies. Economies that are net consumers of tobacco products experience welfare enhancing effects as a result of these regulations. However, these regulations can have adverse welfare effects among net producing economies. Many studies have explored these welfare effects on net consuming economies, whereas the impacts among net producing economies have been neglected. This research paper examined the adverse welfare effects of smoking regulations on small tobacco exporting economies with, a comparative advantage in tobacco production.