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Political economy of tariff unification: the case of Russia

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  • Afontsev Serguey

Abstract

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.

Suggested Citation

  • Afontsev Serguey, 2004. "Political economy of tariff unification: the case of Russia," EERC Working Paper Series 04-12e, EERC Research Network, Russia and CIS.
    • Handle: RePEc:eer:wpalle:04-12e
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    References listed on IDEAS

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    More about this item

    Keywords

    Russia; political economy; endogenous protection theory; tariff regulation; policy formation in transition economy; trade policy;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • P26 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Property Rights
    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid

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