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Internal Trade Barriers in India

Author

Listed:
  • Arindam Das-Gupta

    (Arindam Das-Gupta is Faculty Member, Lee Kuan Yew School of Public Policy, National University of Singapore, Singapore. E-mail: oldmonk87@yahoo.com.)

Abstract

A sub-set of the costs and benefits of sub-national fiscal autonomy in federations is examined with the major focus being on road check-posts. The examination is done with reference to Indian states and using a partial equilibrium, diagrammatic analysis. Empirical analyses of the revenue impact of abolition of ‘fiscal frontiers’ in the European Union in 1993, and the revenue performance of the state of Maharashtra in India, which has no check-posts, relative to other Indian states, point to the preliminary conclusion that road check-posts have positive revenue benefits that cannot be made good by other, information based, enforcement mechanisms. Possible ways of mitigating road check-post costs are reviewed and some issues relating to fiscal barriers requiring further analysis are identified.

Suggested Citation

  • Arindam Das-Gupta, 2006. "Internal Trade Barriers in India," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 7(2), pages 231-254, September.
    • Handle: RePEc:sae:soueco:v:7:y:2006:i:2:p:231-254
    DOI: 10.1177/139156140600700205
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    References listed on IDEAS

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    1. Jack Mintz & Henry Tulkens, 2006. "Commodity Tax Competition Between Member States of a Federation: Equilibrium and Efficiency," Springer Books, in: Parkash Chander & Jacques Drèze & C. Knox Lovell & Jack Mintz (ed.), Public goods, environmental externalities and fiscal competition, chapter 0, pages 449-489, Springer.
    2. Wallace E. Oates & Wallace E. Oates, 2004. "An Essay on Fiscal Federalism," Chapters, in: Environmental Policy and Fiscal Federalism, chapter 22, pages 384-414, Edward Elgar Publishing.
    3. Edgar Cudmore & John Whalley, 2005. "Border Delays and Trade Liberalization," NBER Chapters, in: International Trade in East Asia, pages 391-406, National Bureau of Economic Research, Inc.
    4. Andrea Gebauer & Chang Woon Nam & Rüdiger Parsche, 2003. "Is the Completion of EU Single Market Hindered by VAT Evasion?," CESifo Working Paper Series 974, CESifo.
    5. Mr. Richard Miller Bird, 1999. "Rethinking Subnational Taxes: A New Look At Tax Assignment," IMF Working Papers 1999/165, International Monetary Fund.
    6. Glenn Jenkins, 1996. "Information Technology And Innovation In Tax Administration," Development Discussion Papers 1996-03, JDI Executive Programs.
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    Cited by:

    1. Herrmann-Pillath, Carsten & Libman, Alexander & Yu, Xiaofan, 2014. "Economic integration in China: Politics and culture," Journal of Comparative Economics, Elsevier, vol. 42(2), pages 470-492.

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    More about this item

    Keywords

    JEL: E62; JEL: F13; JEL: H2; JEL: H77; JEL: H26; JEL: O1; JEL: O52; JEL: O53; Road Check-posts; Fiscal Frontiers; Federal Finance; Fiscal Autonomy; India; European Union;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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