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Trade Policy Reform and the Missing Revenue †

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  • Channing Arndt
  • Finn Tarp

Abstract

In many African countries, large discrepancies exist between revenues implied by published tariff rates multiplied by estimated import volumes and actual receipts. We develop a stylised trade model where average and marginal tariff rates diverge and incorporate insights from this model into a computable general equilibrium model of an African economy (Mozambique) to study the implications of trade policy reform. Model simulations indicate that lowering tariff rates and reducing duty-free importation in a manner that maintains official revenue benefit nearly everyone. The main exception is those who benefited from duty-free imports in the base. Copyright 2008 The author 2007. Published by Oxford University Press on behalf of the Centre for the Study of African Economies. All rights reserved. For permissions, please email: journals.permissions@oxfordjournals.org, Oxford University Press.

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Bibliographic Info

Article provided by Centre for the Study of African Economies (CSAE) in its journal Journal of African Economies.

Volume (Year): 17 (2008)
Issue (Month): 1 (January)
Pages: 131-160

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Handle: RePEc:oup:jafrec:v:17:y:2008:i:1:p:131-160

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Cited by:
  1. Rizwana Siddiqui, 2007. "Modelling Gender Dimensions of the Impact of Economic Reforms in Pakistan," Working Papers MPIA 2007-13, PEP-MPIA.
  2. Rizwana Siddiqui, 2005. "Modelling Gender Dimensions of the Impact of Economic Reforms on Time Allocation among Market, Household, and Leisure Activities in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 44(4), pages 615-639.

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