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How large is the bias against exports from import tariffs?

Published online by Cambridge University Press:  20 July 2007

STEPHEN TOKARICK
STEPHEN TOKARICK
Affiliation:
Research Department, International Monetary Fund
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Abstract

One goal that both developed and developing countries share is to increase their export earnings. To do this, countries sometimes resort to various export promotion schemes or request ‘special and differential treatment’ for their exports. However, countries have not fully embraced the notion that their own import tariffs act as a tax on their exports. That is, import protection frustrates their goal of increasing exports. This paper presents quantitative estimates of the extent to which import tariffs discourage exports. The results show that for some countries the bias imparted by tariffs is substantial. Therefore, reducing import tariffs is one way to improve export incentives.

Type
Research Article
Information
World Trade Review , Volume 6 , Issue 2 , July 2007 , pp. 193 - 212
Copyright
Copyright © Stephen Tokarick 2007

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