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Tariff Uniformity and Growth

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  • Josh Ederington
  • Jenny Minier

Abstract

Theoretical ambiguity exists regarding the potential benefits of adopting a uniform tariff schedule. In this paper, we investigate the empirical evidence on this question. From cross-country growth regressions over the period 1988-97 we find a nonlinear relationship between a country's standard deviation of tariffs and its growth rate. Specifically, we find that countries with either a large degree of tariff uniformity or very little tariff uniformity tended to grow faster over this time period, controlling for other factors.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Journal of Economic Policy Reform.

Volume (Year): 5 (2002)
Issue (Month): 2 ()
Pages: 65-73

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Handle: RePEc:taf:jpolrf:v:5:y:2002:i:2:p:65-73

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Related research

Keywords: Economic Growth; Trade Policy; Tarif Uniformity;

References

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  1. Francisco Rodriguez & Dani Rodrik, 1999. "Trade Policy and Economic Growth: A Skeptic's Guide to Cross-National Evidence," NBER Working Papers 7081, National Bureau of Economic Research, Inc.
  2. O'Rourke, Kevin H, 2000. "Tariffs and Growth in the Late 19th Century," Economic Journal, Royal Economic Society, vol. 110(463), pages 456-83, April.
  3. Ann Harrison & Gordon Hanson, 1999. "Who Gains from Trade Reform? Some Remaining Puzzles," NBER Working Papers 6915, National Bureau of Economic Research, Inc.
  4. Jeffrey D. Sachs & Andrew Warner, 1995. "Economic Reform and the Process of Global Integration," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1, 25th A), pages 1-118.
  5. Robert J. Barro, 1989. "Economic Growth in a Cross Section of Countries," NBER Working Papers 3120, National Bureau of Economic Research, Inc.
  6. Panagariya, Arvind & Rodrik, Dani, 1993. "Political-Economy Arguments for a Uniform Tariff," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 34(3), pages 685-703, August.
  7. Greenaway, David & Morgan, Wyn & Wright, Peter, 1997. "Trade liberalization and growth in developing countries: Some new evidence," World Development, Elsevier, vol. 25(11), pages 1885-1892, November.
  8. Kiichiro Fukasaku & Henri-Bernard Solignac Lecomte, 1996. "Economic Transition and Trade-Policy Reform: Lessons from China," OECD Development Centre Working Papers 112, OECD Publishing.
  9. Gatti, Roberta, 1999. "Corruption and trade tariffs, or a case for uniform tariffs," Policy Research Working Paper Series 2216, The World Bank.
  10. Brander, James A. & Spencer, Barbara J., 1985. "Export subsidies and international market share rivalry," Journal of International Economics, Elsevier, vol. 18(1-2), pages 83-100, February.
  11. Ben-David, Dan, 1993. "Equalizing Exchange: Trade Liberalization and Income Convergence," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 653-79, August.
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