Browsing Research documents by Author "Kreickemeier, Udo"
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Raimondos-Møller, Pascalis; Kreickemeier, Udo (København, 2006)[More information][Less information]
Abstract: We show that the standard concertina result for tariff reforms – i.e. lowering the highest tariff increases welfare – no longer holds in general if we allow for international capital mobility. The result can break down if the good whose tariff is lowered is not capital intensive. If the concertina reform lowers welfare it lowers market access as well, thereby compromising a second goal that is typically connected with trade liberalisation. JEL-Classification: F11, F13, F15 Key words: Trade Policy Reform, International Factor Mobility, Welfare, Market Access URI: http://hdl.handle.net/10398/7637 Files in this item: 1
wp5-2006.pdf (157.8Kb) -
Raimondos-Møller, Pascalis; Kreickemeier, Udo (København, 2006)[More information][Less information]
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. JEL code: F13, H20. Keywords: Market access; tariff reform, consumption tax reform. URI: http://hdl.handle.net/10398/7629 Files in this item: 1
wp6-2006.pdf (149.3Kb)
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