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On Uniform Import Tariffs in Developing Countries

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  • Sebastian Edwards

Abstract

The purpose of this paper is to theoretically assess, from a welfare perspective, the desirability of uniform import tariffs. Since the eruption of the debt crisis, many proposals for structural reforms in the developing countries have contemplated a trade liberalization process that would create a low and uniform tariff structure. In this paper I review the literature on the subject and construct a general equilibrium model to evaluate the consequences of alternative structural adjustment policies. Throughout the analysis it is assumed that labor markets and nontradables markets are subject to some distortions.

Suggested Citation

  • Sebastian Edwards, 1990. "On Uniform Import Tariffs in Developing Countries," NBER Working Papers 3347, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:3347 Note: ITI IFM
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    File URL: http://www.nber.org/papers/w3347.pdf
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    References listed on IDEAS

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    1. V. K. Ramaswami & T. N. Srinivasan, 1968. "Optimal Subsidies and Taxes When Some Factors Are Traded," Journal of Political Economy, University of Chicago Press, vol. 76, pages 569-569.
    2. Arvind Panagariya, 1983. "Import Objective, Distortions, and Optimal Tax Structure: A Generalization," The Quarterly Journal of Economics, Oxford University Press, vol. 98(3), pages 515-524.
    3. Jones, Ronald W. & Peter Neary, J., 1984. "The positive theory of international trade," Handbook of International Economics,in: R. W. Jones & P. B. Kenen (ed.), Handbook of International Economics, edition 1, volume 1, chapter 1, pages 1-62 Elsevier.
    4. Tatsuo Hatta, 1977. "A Theory of Piecemeal Policy Recommendations," Review of Economic Studies, Oxford University Press, vol. 44(1), pages 1-21.
    5. R. G. Lipsey & Kelvin Lancaster, 1956. "The General Theory of Second Best," Review of Economic Studies, Oxford University Press, vol. 24(1), pages 11-32.
    6. Edwards, Sebastian, 1988. "Terms of Trade, Tariffs, and Labor Market Adjustment in Developing Countries," World Bank Economic Review, World Bank Group, vol. 2(2), pages 165-185, May.
    7. Edwards, Sebastian & van Wijnbergen, Sweder, 1986. "The Welfare Effects of Trade and Capital Market Liberalization," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 27(1), pages 141-148, February.
    8. Peter A. Diamond & J. A. Mirrlees, 1968. "Optimal Taxation and Public Production," Working papers 22, Massachusetts Institute of Technology (MIT), Department of Economics.
    9. J. Peter Neary, 1985. "International Factor Mobility, Minimum Wage Rates, and Factor-Price Equalization: A Synthesis," The Quarterly Journal of Economics, Oxford University Press, vol. 100(3), pages 551-570.
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    Cited by:

    1. Osang, Thomas & Pereira, Alfredo, 1996. "Import tariffs and growth in a small open economy," Journal of Public Economics, Elsevier, vol. 60(1), pages 45-71, April.

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