Import tariffs and growth in a small open economy

• 成果类型: Article
• 署名作者: Osang, T; Pereira, A
• 署名单位: William & Mary; Southern Methodist University
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/0047-2727(95)01510-8
• 发表日期: 1996
• 页码: 45-71
• 关键词: tariffs; endogenous growth; welfare; small open economies

摘要

In this paper we study the relationship between tariff structure, growth and welfare for a small, open country with endogenous growth induced by human capital accumulation. Using a model with trade in consumption and two investment goods, we consider the short- and long-run effects of a permanent unanticipated increase in the tariff rates under different replacement regimes, i.e. lump-sum transfer or investment tax credit. We show that most tariffs reduce growth, even in the short run. Also, all tariffs are welfare-reducing in the long run, but some may improve welfare in the short run. We find that, in general, differential tariffs are welfare-optimal. Starting from a uniform tariff structure, a revenue-neutral tariff reform may, therefore, increase growth and welfare in the long run. The structure of the optimal differential tariff varies, however, depending on the replacement regime.