Download or read book Tax Policy and Trade Liberalization written by Mr.Andrew Feltenstein and published by INTERNATIONAL MONETARY FUND. This book was released on 1992-12-01 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: We construct a dynamic general equilibrium model of an open economy and use it to examine issues of trade liberalization in Mexico. In particular, we consider the fiscal implications of quotas and tariffs and, accordingly, their removal. We show that, in the short run, there may be negative revenue effects from tariff liberalization, so that it may be necessary to raise domestic taxes to compensate for the tariff reduction. We also show that these results are highly sensitive to behavioral shifts in exports. Since such shifts are quite likely given the nature of the trade reform currently being undertaken, it is important that we qualify our results accordingly.
Download or read book Joint Trade Liberalization and Tax Reform in a Small Open Economy written by Denise Konan and published by . This book was released on 1997 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Revenue and the Fiscal Impact of Trade Liberalization written by Ali Zafar and published by World Bank Publications. This book was released on 2005 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: First, the preferred tariff regime in terms of overall fiscal and job creation impact was the harmonized Swiss formula in contrast to a 10 and 15 percent uniform tariff. Second, a possible Regional Economic Partnership Agreement (REPA) between the European Union and l'Union 9conomique et Monťaire Ouest-Africaine (UEMOA) by 2015 that would abolish duties on EU imports to the UEMOA countries would have negative fiscal effects on Niger of more than 1 percent of GDP, positive effects on trade creation of about 1.5 percent of GDP, and ambiguous effects on local industry. While there will be some welfare gains for consumers and importers from lower import tariffs and the possibility of trade creation, the fiscal losses and adjustment costs would be significant, particularly in the machinery and transport sectors. Third, there are asymmetric gains and losses from regional integration and tariff changes, and a 10 percent uniform tariff would have the greatest impact on Niger and Togo. In sum, further trade liberalization in Niger will have significant fiscal costs, partially offset by trade creation through increased imports"--Abstract.
Download or read book Trade Liberalization and Tax Reform in the Southern Mediterranean Region written by Mr.George T. Abed and published by International Monetary Fund. This book was released on 1998-04-01 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: The European Union’s Association Agreements with several countries in the Southern Mediterranean Region (SMR) aim to promote deeper economic integration between the SMR and the EU by establishing a free trade area in twelve years. Because a large share of the SMR countries’ total imports comes from the EU, the removal of import tariffs could reduce budgetary revenue by the equivalent of 1 percent to 4 percent of individual countries’ GDP. This paper proposes tax and tariff reforms that would help generate the needed compensatory revenue and, more important in the long run, reduce the distortionary effects of the tax and tariff systems and underpin higher rates of sustainable growth.
Download or read book Fiscal Implications of Trade Liberalization written by Mr.David Bevan and published by International Monetary Fund. This book was released on 1995-05-01 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the relationship between trade liberalization and the budget deficit, which depends on the specifics of country’s economic structure, and the trade regime which is being liberalized. It relates some popular but incomplete approaches to assessing this issue (such as analysis of the foreign exchange budget) to a more comprehensive approach using an applied general equilibrium model. The argument is illustrated using data from the most recent of a sequence of abortive planned liberalizations in Kenya, as well as a number of stylized illustrations. The conclusions are not only that liberalization may be budget enhancing, but that in certain circumstances it may be strongly so.
Download or read book Trade Liberalization written by Romain Wacziarg and published by Edward Elgar Publishing. This book was released on 2018 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This compelling two-volume collection presents the major literary contributions to the economic analysis of the consequences of trade liberalization on growth, productivity, labor market outcomes and economic inequality. Examining the classical theories that stress gains from trade stemming from comparative advantage, the selection also comprises more recent theories of imperfect competition, where any potential gains from trade can stem from competitive effects or the international transmission of knowledge. Empirical contributions provide evidence regarding the explanatory power of these various theories, including work on the effects of trade openness on economic growth, wages, and income inequality, as well as evidence on the effects of trade on firm productivity, entry and exit. Prefaced by an original introduction from the editor, the collection will to be an invaluable research resource for academics, practitioners and those drawn to this fascinating topic.
Download or read book Why Corporate Taxes May Rise written by Hans Jarle Kind and published by . This book was released on 2002 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Tax Revenue and or Trade Liberalization written by Thomas Baunsgaard and published by INTERNATIONAL MONETARY FUND. This book was released on 2005-06-01 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: With the public finances of many developing and emerging market countries still heavily dependent on trade tax revenues, further trade liberalization may be hindered unless they are able to develop alternative sources of revenue. While there is now a well-established body of theory and policy advice on how this might be done in principle, this paper uses panel data for 111 countries over 25 years- cleaned for a variety of problems in standard data sources-to ask what has happened in practice: Have countries in fact recovered from other sources the revenues they have lost from past episodes of trade liberalization? High-income countries clearly have. For middle-income countries, recovery has been in the order of 45-60 cents for each dollar of lost trade tax revenue, with signs of close to full recovery when separately identifying episodes in which trade tax revenues fell. Troublingly, however, revenue recovery has been extremely weak in low-income countries (which are those most dependent on trade tax revenues): they have recovered, at best, no more than about 30 cents of each lost dollar. Nor is there much evidence that the presence of a value-added tax has in itself made it easier to cope with the revenue effects of trade liberalization.
Download or read book The Political Economy of Trade Liberalization and Environmental Policy written by Per G. Fredriksson and published by . This book was released on 2001 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The global trading system is currently undergoing another round of trade liberalization (the Uruguay Round), and regional economic integration is occurring in several parts of the world (e.g., EU, NAFTA). A surge in the interest in the environment has made the trade-environment link a part of trade talks. Following trade reform, it has become commonplace that industry representatives argue that less stringent environmental regulations in LDCs give these countries a comparative advantage in pollution intensive commodities, and that industries with high abatement costs will migrate to LDCs. This prediction is a political pressure on industrialized countries' environmental regulations in order to restore "competitiveness". Environmentalists argue that international differences in environmental laws and regulations may be reduced to their lowest common denominator through industry political pressure. This is thus not a fear of trade liberalization itself but of the effects of lower trade barriers on the political determination of environmental regulation. This paper focuses on the political economy effects of trade regime on environmental tax policy. First, we show that the politically determined tax may be inefficiently high or low depending on the relative political pressures in equilibrium. A positive tariff tends to increase the tax rate, since this increases tariff revenues. Second, we show the effects of trade liberalization on lobbying incentives. Both lobby groups are found to reduce their lobbying. This is because the marginal returns to a change in the tax fall. Thus, the lobby groups' political polarization on the environmental tax policy issue is reduced through tariff liberalization. Next, if the pollution tax falls sufficiently, pollution increases through the political channel. Fourth, we study the effect of tariff liberalization on pollution tax revenues. Several OECD countries are considering implementing or increasing pollution taxes in order to raise revenues. Tax revenues may fall due to political economy effects on the pollution tax rate. This implies that the environmental policy reforms proposed may lead to lower revenues than expected if the support from environmental lobby groups decreases faster than the opposition from industry interests. Furthermore, we find that pollution may increase simultaneously as tax revenues decrease. Finally, we discuss the case when the polluting good is exported, and is subject to an export tax. A reduction in the export tax increases the political polarization between the lobby groups, and depending on the relative increase in lobby group pressures, the pollution tax rate, pollution and pollution tax revenues may increase or decrease. An implication is that tariffs do not only distort domestic consumption and production, but also stimulate lobbying activities in other areas such as environmental regulation. Our findings also have a policy implication. Multilateral trade agreements that incorporate restrictions on changes in environmental policy would make it harder for domestic policy makers to mitigate the effects of trade liberalization. Environmental regulation would then not become a trade policy tool.
Download or read book Trade and Tax Policy Inflation and Exchange Rates written by Assaf Razin and published by Springer Science & Business Media. This book was released on 2012-12-06 with total page 300 pages. Available in PDF, EPUB and Kindle. Book excerpt: Ass a f R a z i nand Hans-Jiirgen Vosgerau The eight chapters of this volume have been grouped into two parts. Part A of contains chapters which are mainly monetary in character, whereas real aspects international economics are treated in Part B. It goes without saying that this is only a device for structuring the field. In substance most chapters reveal the close connections between real and monetary aspects. Part A on "Inflation, Exchange Rates, and Macro-Economic Adjustment in the Global Economy" consists of four papers. In recent years, an inflation targeting framework for monetary policy has been adopted by New Zealand, Canada, the United Kingdom, Finland, Sweden, Australia, and Spain (in chronological order). The use of inflation targeting can be viewed as a further step in the evolution of monetary policy techniques adopted by central banks. A common feature of the countries that have adopted inflation targets is the relatively poor inflation record over the last 30 years compared with other industrial countries such as Germany, Switzerland, Japan and the United States. Because of their relatively good inflation record, this latter group of countries has not explicitly adopted inflation targeting. With, or without, explicit inflation targeting the monetary policy credibility hinges on the independence of the central bank. Alex Cukierman addresses the issue of central bank independence by surveying alternative ways to characterize independence.
Download or read book Democracies in Peril written by Ida Bastiaens and published by Cambridge University Press. This book was released on 2018-06-25 with total page 345 pages. Available in PDF, EPUB and Kindle. Book excerpt: Globalization is triggering a 'revenue shock' in developing economies. International trade taxes - once the primary source of government revenue - have been cut drastically in response to trade liberalization. Bastiaens and Rudra make the novel argument that regime type is a major determinant of revenue-raising capacity once free trade policies have been adopted. Specifically, policymakers in democracies confront greater challenges than their authoritarian counterparts when implementing tax reforms to offset liberalization's revenue shocks. The repercussions are significant: while the poor bear the brunt of this revenue shortfall in democracies, authoritarian regimes are better-off overall. Paradoxically, then, citizens of democracies suffer precisely because their freer political culture constrains governmental ability to tax and redistribute under globalization. This important contribution on the battle between open societies and the ability of governments to help their people prosper under globalization is essential reading for students and scholars of political economy, development studies and comparative politics.
Download or read book Globalization and the need for fiscal reform in developing countries Occasional Paper SITI Documento de Divulgaci n IECI n 6 written by Vito Tanzi and published by BID-INTAL. This book was released on 2004 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Trade Global Policy and the Environment written by Per Fredriksson and published by World Bank Publications. This book was released on 1999-01-01 with total page 236 pages. Available in PDF, EPUB and Kindle. Book excerpt: QUOTEWe live in an increasingly interconnected world. Trade flows worldwide are growing rapidly and global production patterns are shifting as countries follow their comparative advantage in production via trade. At the same time, however, there is growing concern about potential adverse environmental impacts from increasing trade.QUOTE--John A. Dixon, Lead Economist, The Environment Department, World BankInterest in the trade and environment debate has intensified as a result of international trade agreements and because many proposed solutions to the climate change problem have potential implications for the global trading system. Clearly more empirical work is needed to inform the debate, guide policymakers toward solutions, and help set priorities.This volume is an attempt to further our understanding of the empirical links between trade and the environment. Thirteen chapters, which were presented as papers at a World Bank conference in April 1998, focus on three main themes:1. Effects of trade liberalization and growth on the environment2. The QUOTEpollution havenQUOTE hypothesis3. Economic instruments for resolving global environmental problemsThe papers address a number of different issues within each of the themes, offering new data or new questions and approaches. They are devoted to deepening our understanding and empirical knowledge of the various effects of trade liberalization. Only through a firm understanding of the linkages involved can well-founded policy advice be formulated.
Download or read book Trade Liberalization and Environmental Taxation in Federal Systems written by Per G. Fredriksson and published by . This book was released on 2014 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Public Finance Trade and Development written by Johannes F. Linn and published by World Bank Publications. This book was released on 1989 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Trade Policy and Global Poverty written by William R. Cline and published by Peterson Institute. This book was released on 2004 with total page 350 pages. Available in PDF, EPUB and Kindle. Book excerpt: Free trade can help 500 million people escape poverty and inject.
Download or read book Fiscal Policy in Open Developing Economies written by Mr.Vito Tanzi and published by International Monetary Fund. This book was released on 1990-06-15 with total page 244 pages. Available in PDF, EPUB and Kindle. Book excerpt: Based on papers presented at the 44th Congress of the international Institute of Public Finance, this book, edited by Vito Tanzi, deals with public finance and macroeconomic policy in open, developing economies, with case studies of Chile, Mexico, Turkey, Korea, and the Arab oil exporting countries.
