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On Uniform Import Tariffs in Developing Countries

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  • Sebastian Edwards

Abstract

The purpose of this paper is to theoretically assess, from a welfare perspective, the desirability of uniform import tariffs. Since the eruption of the debt crisis, many proposals for structural reforms in the developing countries have contemplated a trade liberalization process that would create a low and uniform tariff structure. In this paper I review the literature on the subject and construct a general equilibrium model to evaluate the consequences of alternative structural adjustment policies. Throughout the analysis it is assumed that labor markets and nontradables markets are subject to some distortions.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 3347.

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Date of creation: May 1990
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Handle: RePEc:nbr:nberwo:3347

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  1. Hatta, Tatsuo, 1977. "A Theory of Piecemeal Policy Recommendations," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 44(1), pages 1-21, February.
  2. V. K. Ramaswami & T. N. Srinivasan, 1968. "Optimal Subsidies and Taxes When Some Factors Are Traded," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 76, pages 569.
  3. Jones, Ronald W. & Peter Neary, J., 1984. "The positive theory of international trade," Handbook of International Economics, Elsevier, in: R. W. Jones & P. B. Kenen (ed.), Handbook of International Economics, edition 1, volume 1, chapter 1, pages 1-62 Elsevier.
  4. Edwards, Sebastian & van Wijnbergen, Sweder, 1986. "The Welfare Effects of Trade and Capital Market Liberalization," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 27(1), pages 141-48, February.
  5. Edwards, Sebastian, 1988. "Terms of Trade, Tariffs, and Labor Market Adjustment in Developing Countries," World Bank Economic Review, World Bank Group, World Bank Group, vol. 2(2), pages 165-85, May.
  6. Neary, J Peter, 1985. "International Factor Mobility, Minimum Wage Rates, and Factor-Price Equalization: A Synthesis," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 100(3), pages 551-70, August.
  7. Peter A. Diamond & J. A. Mirrlees, 1968. "Optimal Taxation and Public Production," Working papers 22, Massachusetts Institute of Technology (MIT), Department of Economics.
  8. Panagariya, Arvind, 1983. "Import Objective, Distortions, and Optimal Tax Structure: A Generalization," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 98(3), pages 515-24, August.
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Cited by:
  1. Osang, Thomas & Pereira, Alfredo, 1996. "Import tariffs and growth in a small open economy," Journal of Public Economics, Elsevier, Elsevier, vol. 60(1), pages 45-71, April.

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