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How large is the bias against exports from import tariffs?

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  • TOKARICK, STEPHEN

Abstract

One goal that both developed and developing countries share is to increase their export earnings. To do this, countries sometimes resort to various export promotion schemes or request ‘special and differential treatment’ for their exports. However, countries have not fully embraced the notion that their own import tariffs act as a tax on their exports. That is, import protection frustrates their goal of increasing exports. This paper presents quantitative estimates of the extent to which import tariffs discourage exports. The results show that for some countries the bias imparted by tariffs is substantial. Therefore, reducing import tariffs is one way to improve export incentives.

Suggested Citation

  • Tokarick, Stephen, 2007. "How large is the bias against exports from import tariffs?," World Trade Review, Cambridge University Press, vol. 6(2), pages 193-212, July.
    • Handle: RePEc:cup:wotrrv:v:6:y:2007:i:02:p:193-212_00
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    1. repec:wyi:journl:002196 is not listed on IDEAS
    2. Kyle Bagwell & Robert W. Staiger, 2013. "Can the Doha Round Be a Development Round? Setting a Place at the Table," NBER Chapters, in: Globalization in an Age of Crisis: Multilateral Economic Cooperation in the Twenty-First Century, pages 91-124, National Bureau of Economic Research, Inc.
    3. Bagwell, Kyle & Staiger, Robert W., 2010. "Backward stealing and forward manipulation in the WTO," Journal of International Economics, Elsevier, vol. 82(1), pages 49-62, September.
    4. Chandra, Piyush & Long, Cheryl, 2013. "VAT rebates and export performance in China: Firm-level evidence," Journal of Public Economics, Elsevier, vol. 102(C), pages 13-22.
    5. Gnangnon, Sèna Kimm & Iyer, Harish, 2021. "Effect of Aid for Trade and Foreign Direct Investment Inflows on the Utilization of Unilateral Trade Preferences offered by the QUAD countries," EconStor Preprints 238211, ZBW - Leibniz Information Centre for Economics.
    6. Mulu Gebreyesus & Alekaw Kebede, 2017. "Ethiopia’s export promotion and the misalignment of the tariff and exchange rate regimes," Working Papers 019, Policy Studies Institute.

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