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Market Access and Welfare Effects of Piecemeal Policy Reform

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  • Jiandong Ju
  • Kala Krishna

Abstract

In a situation where tariff reforms are being negotiated between two parties aims to raise its exports and the other aims to raise its welfare, tariff cuts must be in the interest" of at least one party. It is possible for the interests of the two sides to conflict. Conflict is certain" if the excess demand for exported goods does not respond to changes in the prices of imported" goods. In this case, any policy which raises imports must also reduce welfare."

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 6294.

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Date of creation: Nov 1997
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Publication status: published as Ju, Jiandong and Kala Krishna. "Welfare And Market Access Effects Of Piecemeal Tariff Reform," Journal of International Economics, 2000, v51(2,Aug), 305-316.
Handle: RePEc:nbr:nberwo:6294

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  1. Lopez, Ramon & Rodrik, Dani, 1989. "Trade restrictions with imported intermediate inputs : when does the trade balance improve?," Policy Research Working Paper Series 174, The World Bank.
  2. Jiandong Ju & Kala Krishna, 1996. "Market Access and Welfare Effects of Free Trade Areas without Rules of Origin," NBER Working Papers 5480, National Bureau of Economic Research, Inc.
  3. Hatta, Tatsuo, 1977. "A Recommendation for a Better Tariff Structure," Econometrica, Econometric Society, vol. 45(8), pages 1859-69, November.
  4. Lloyd, P. J., 1974. "A more general theory of price distortions in open economies," Journal of International Economics, Elsevier, vol. 4(4), pages 365-386, November.
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