Impacts of Service Sector Policy Reform:CGE model Analysis based on Sri Lanka
AbstractThis paper investigates the macroeconomic effects of services sector reform policies using two computable general equilibrium models of Sri Lankan economy. First model assumes perfect competitive market and second one assumes monopoly supplier economy. Both models have been calibrated using Sri Lanka’s social accounting matrix currently available. Impacts of both services sector production tax reduction and import tariff increase have been simulated. Simulation results imply that reduction of services sector production tax is better than increase of import tariff in both perfect competition case and monopoly supplier case.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 30603.
Date of creation: 20 Aug 2010
Date of revision:
Sri Lanka Services sector; Production Tax; Import tariff; CGE model;
Find related papers by JEL classification:
- D5 - Microeconomics - - General Equilibrium and Disequilibrium
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- Gooroochurn, Nishaal & Milner, Chris, 2005. "Assessing Indirect Tax Reform in a Tourism-Dependent Developing Country," World Development, Elsevier, vol. 33(7), pages 1183-1200, July.
- Brown, Martin & Maurer, Maria Rueda & Pak, Tamara & Tynaev, Nurlanbek, 2009. "The impact of banking sector reform in a transition economy: Evidence from Kyrgyzstan," Journal of Banking & Finance, Elsevier, vol. 33(9), pages 1677-1687, September.
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