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Fiscal Implications of Multilateral Tariff Cuts

Author

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

Abstract

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.

Suggested Citation

  • Azim M Sadikov & Hans P Lankes & Dustin Smith & Katrin Elborgh-Woytek & Jean-Jacques Hallaert, 2006. "Fiscal Implications of Multilateral Tariff Cuts," IMF Working Papers 06/203, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:06/203
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Sam LAIRD, 2007. "Aid for Trade: Cool Aid or Kool-Aid?," G-24 Discussion Papers 48, United Nations Conference on Trade and Development.
    2. Sokolovska, Olena & Sokolovskyi, Dmytro, 2011. "The effect of tax-tariff reform: evidence from Ukraine," MPRA Paper 42643, University Library of Munich, Germany.
    3. Stibora, Joachim & de Vaal, Albert, 2007. "Trade Liberalization and its Fiscal Implications in a North-South Trade Model," Economics Discussion Papers 2007-1, School of Economics, Kingston University London.

    More about this item

    Keywords

    Fiscal policy; Tariffs; Trade negotiations; Trade taxes; Taxation; Doha Round; trade policy; trade liberalization; tariff revenue; tariff cuts; tariff lines; Trade Policy. Doha Round;

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