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Unilateral tariff cuts: a theory

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  • Sokolovska, Olena

Abstract

In order to analyze the Ukraine-EU trade arrangement in the context of modern theory of non-reciprocal trade agreements we provide brief examination of some theoretical approaches and practical implications of unilateral tariff preference schemes and examine current situation with tariff regulation in Ukraine-EU commodity trade. We found that unilateral tariff reduction or elimination under these schemes could lead either to trade creation or trade diversion, depending firstly form the presence of market power of beneficiary country. The obtained results could be used for further estimation of impact of non-reciprocal reduction of tariffs by EU governments on Ukrainian export flows

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  • Sokolovska, Olena, 2016. "Unilateral tariff cuts: a theory," MPRA Paper 70493, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:70493
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    References listed on IDEAS

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    Cited by:

    1. Sokolovska, Olena & Sokolovskyi, Dmytro, 2016. "Optimization of government trade behavior and its implication for small developing economy (the case of Ukraine)," MPRA Paper 71983, University Library of Munich, Germany.
    2. Olena Sokolovska & Dmytro Sokolovskyi, 2017. "Efficient Government Trade Behavior and Its Implication for Small Developing Economy: The Case of Ukraine," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 64-81.

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    More about this item

    Keywords

    tariff preferences; trade policy; unilateral trade liberalization;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General

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