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Fiscal Implications of Multilateral Tariff Cuts

  • Azim M. Sadikov
  • Hans P. Lankes
  • Dustin Smith
  • Katrin Elborgh-Woytek
  • Jean-Jacques Hallaert

The paper contributes to the discussion about the revenue implications of trade reform by assessing the approximate fiscal revenue impact of different liberalization formulae under consideration in multilateral trade negotiations for a group of low- and middle-income countries. The study applies a linear optimization framework to data for bound tariffs, applied tariffs, and imports at the HS-6 digit level for 58 developing countries, and simulates results for different sets of import demand elasticities and developing country "flexibilities." While only a small number of countries face a significant impact, results point toward the need for complementary fiscal measures in the countries most affected by revenue loss.

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Paper provided by International Monetary Fund in its series IMF Working Papers with number 06/203.

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Length: 36
Date of creation: 01 Sep 2006
Date of revision:
Handle: RePEc:imf:imfwpa:06/203
Contact details of provider: Postal: International Monetary Fund, Washington, DC USA
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  1. repec:rus:hseeco:121595 is not listed on IDEAS
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  18. repec:rus:hseeco:123073 is not listed on IDEAS
  19. Khattry, Barsha & Mohan Rao, J., 2002. "Fiscal Faux Pas?: An Analysis of the Revenue Implications of Trade Liberalization," World Development, Elsevier, vol. 30(8), pages 1431-1444, August.
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