When designing a trade policy reform, government of a transition country faces the problem of minimizing both trade distortions and losses in tariff revenues. One possible solution of this problem is tariff unification, which undermines stimuli for tariff evasion and thus saves budget revenues. We use Grossman-Helpman (1994) model of tariff formation extended for the case of asymmetric information to analyze a political economy basis of tariff unification in Russia (2000-2001) and prospects of further tariff unification during the WTO accession process.
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Paper provided by EERC Research Network, Russia and CIS in its series EERC Working Paper Series with number
04-12e.
Length: Date of creation: 05 Oct 2004 Date of revision: Handle: RePEc:eer:wpalle:04-12e
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Find related papers by JEL classification: F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations F14 - International Economics - - Trade - - - Country and Industry Studies of Trade P26 - Economic Systems - - Socialist Systems and Transition Economies - - - Political Economy P33 - Economic Systems - - Socialist Institutions and Their Transitions - - - International Linkages
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