Citation

Discussion Paper Details

Please find the details for DP5889 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Tariff-Tax Reforms and Market Access

Author(s): Udo Kreickemeier and Pascalis Raimondos

Publication Date: October 2006

Keyword(s): consumption tax reform, market access and tariff reform

Programme Area(s): International Trade and Regional Economics

Abstract: Reducing tariffs and increasing consumption taxes is a standard IMF advice to countries that want to open up their economy without hurting government finances. Indeed, theoretical analysis of such a tariff-tax reform shows an unambiguous increase in welfare and government revenues. The present paper examines whether the country that implements such a reform ends up opening up its markets to international trade, i.e. whether its market access improves. It is shown that this is not necessarily so. We also show that, comparing to the reform of only tariffs, the tariff-tax reform is a less efficient proposal to follow both as far as it concerns market access and welfare.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=5889

Bibliographic Reference

Kreickemeier, U and Raimondos, P. 2006. 'Tariff-Tax Reforms and Market Access'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=5889