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Cardamom is a high-value spice primarily produced in Guatemala and India. This study empirically quantifies the impact of Saudi Arabia’s import restriction on Indian cardamom using a spatial equilibrium model, incorporating imperfect competition and product differentiation between India and Guatemala in the world cardamom market. The study finds that the price of Indian cardamom in Saudi Arabia increases by 41% and causes an overall world net welfare loss of $20.5 million for Indian cardamom in the global market. However, Guatemala benefits from this policy by reallocating its cardamom trade to Saudi Arabia.
