Effect of Import Liberalization on Tariff Revenue in Ghana
AbstractIn contributing to the ongoing debate on the impact of trade liberalization, this paper investigates the quantitative effect of import liberalization on tariff revenue in Ghana. A decomposition analysis was conducted to determine the relative effects of the different features of the import policy reforms. In addition, the impact of tariff rate reductions on tariff revenue was inferred using estimated results from the real imports equation. The study indicates that import tariff revenue is neither buoyant nor elastic in Ghana. Even though exchange rate depreciation over the liberalization period has increased tariff revenue, it is offset by the revenue-reducing effect of tariff reductions over this period. Moreover, the net effect of import liberalization in the form of reductions in the average tariff rate has been negative. The study recommends further improvements in customs administration and duty collection mechanisms to reduce leakage, an effective detection of evasion, enforcement of penalties, and tax replacements as key complementing measures.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by African Economic Research Consortium in its series Research Papers with number RP_180.
Length: 46 pages
Date of creation: Jun 2008
Date of revision:
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statistics
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (winston wachanga).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.