IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/281.html
   My bibliography  Save this paper

Tariff policy and taxation in developing countries

Author

Listed:
  • Balassa, Bela

Abstract

Developing countries are well advised to adopt appropriate tariff and tax policies. An ideal scheme of such policies would include the following : 1) export taxes should be set on the basis of the long run elasticity of foreign demand in the case of commodities in which the country has market power and at a rate to ensure that exportable production equals the quota when export quotas are applied, 2) import tariffs should be set at equal rates on all manufactured goods, complemented by taxes on their primary inputs, to ensure equal effective rates of protection at desirable levels, preferably not exceeding 10 percent. Primary activities and exports in general should be exempted from tariffs on their inputs. 3) Value added taxes should be levied on all commodities at equal rates, supplemented by excise taxes on luxury commodities and on commodities that create negative consumption externalities.

Suggested Citation

  • Balassa, Bela, 1989. "Tariff policy and taxation in developing countries," Policy Research Working Paper Series 281, The World Bank.
  • Handle: RePEc:wbk:wbrwps:281
    as

    Download full text from publisher

    File URL: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/1989/09/01/000009265_3960928071738/Rendered/PDF/multi_page.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Mantel, Rolf R. & Martirena-Mantel, Ana M., 1986. "On the uniformity of optimal tariffs," Journal of Development Economics, Elsevier, vol. 21(1), pages 41-52, April.
    2. Atkinson, A. B. & Stiglitz, J. E., 1972. "The structure of indirect taxation and economic efficiency," Journal of Public Economics, Elsevier, vol. 1(1), pages 97-119, April.
    3. Clarete, Ramon L. & Whalley, John, 1987. "Comparing the marginal welfare costs of commodity and trade taxes," Journal of Public Economics, Elsevier, vol. 33(3), pages 357-362, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Panagariya, Arvind & Rodrik, Dani, 1993. "Political-Economy Arguments for a Uniform Tariff," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 34(3), pages 685-703, August.
    2. Christian E. Weller & Manita Rao, 2008. "Can Progressive Taxation Contribute to Economic Development?," Working Papers wp176, Political Economy Research Institute, University of Massachusetts at Amherst.
    3. Mitra, Pradeep, 1990. "The coordinated reform of tariffs and domestic indirect taxes," Policy Research Working Paper Series 490, The World Bank.
    4. Shafaeddin, Mehdi, 2009. "Impact of Selectivity and Neutrality of trade Policy Incentives on Industrialization of Developing Countries; Implications for NAMA Negotiations," MPRA Paper 15037, University Library of Munich, Germany.
    5. Panagariya, Arvind, 1990. "How should tariffs be structured?," Policy Research Working Paper Series 353, The World Bank.
    6. Panagariya, Arvind & Rodrik, Dani, 1991. "Political economy arguments for uniform tariffs," Policy Research Working Paper Series 681, The World Bank.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:281. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi) or (Marina Grazioli). General contact details of provider: http://edirc.repec.org/data/dvewbus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.