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Trade policy reform and international trade tax revenue in Uganda

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  • Hisali, Eria

Abstract

This paper contributes to the literature on the relationship between tariff reform and customs tax revenue by explicitly capturing the institutional features of decision making in the econometric modeling. The results show that exchange rate depreciation has had pass through effects to the domestic market price of imports which reduces trade tax revenue to GDP ratio in the long run, though it increases trade tax revenue in the short term. There are also seasonal patterns in the short term trade tax payment. The results point to some scope to harness the benefits associated with trade policy reform without having to worry a lot about its effects on trade (and overall) tax revenue. In fact, it would be possible to realise modest increases in trade tax revenue if the exemption regime were to be reviewed and if there was capacity to contain the disruptive impact of sharp exchange rate depreciations.

Suggested Citation

  • Hisali, Eria, 2012. "Trade policy reform and international trade tax revenue in Uganda," Economic Modelling, Elsevier, vol. 29(6), pages 2144-2154.
    • Handle: RePEc:eee:ecmode:v:29:y:2012:i:6:p:2144-2154
    DOI: 10.1016/j.econmod.2012.06.033
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    References listed on IDEAS

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    Cited by:

    1. Ole Boysen & Alan Matthews, 2017. "Will Economic Partnership Agreements Increase Poverty? The Case of Uganda," Review of Development Economics, Wiley Blackwell, vol. 21(2), pages 353-382, May.
    2. Gnangnon, Sèna Kimm, 2021. "Tax reform and public debt instability in developing countries: The trade openness and public revenue instability channels," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 54-67.
    3. Jean-François Brun & Sèna Kimm Gnangnon, 2019. "Tax reform, public revenue and public revenue instability in developing countries: Does development aid matter?," Working Papers halshs-02089734, HAL.
    4. Prowd, Roosesvelt S. & Kollie, Genesis B., 2021. "Determinants of Tax Revenue in Liberia: An Empirical Investigation," African Journal of Economic Review, African Journal of Economic Review, vol. 9(2), April.
    5. Gnangnon, Sèna Kimm, 2020. "Internet and tax reform in developing countries," Information Economics and Policy, Elsevier, vol. 51(C).
    6. Jean-François Brun & Sèna Kimm Gnangnon, 2019. "Tax reform, public revenue and public revenue instability in developing countries: Does development aid matter?," CERDI Working papers halshs-02089734, HAL.
    7. Kazunobu Hayakawa & Fukunari Kimura & Nuttawut Laksanapanyakul, 2018. "Measuring the usage of preferential tariffs in the world," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 154(4), pages 705-723, November.
    8. Mohammad Karimi & Shivee Ranjanee Kaliappan & Normaz Wana Ismail & Hanny Zurina Binti Hamzah, 2016. "Does Trade Liberalization Affects International Trade Tax Revenue? Evidence from Dynamic Panel Threshold Method," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 75-87.
    9. Joseph Mawejje & Ezra Francis Munyambonera, 2016. "Tax Revenue Effects of Sectoral Growth and Public Expenditure in Uganda," South African Journal of Economics, Economic Society of South Africa, vol. 84(4), pages 538-554, December.
    10. Hisali, Eria & Ddumba-Ssentamu, John, 2013. "Foreign aid and tax revenue in Uganda," Economic Modelling, Elsevier, vol. 30(C), pages 356-365.
    11. Ahmad, Khalil & Ali, Safdar & Ali, Amjad, 2018. "Trade Revenue Implications of Trade Liberalization in Pakistan," MPRA Paper 87529, University Library of Munich, Germany.
    12. Sèna Kimm Gnangnon, 2020. "Export product diversification and tax performance quality in developing countries," International Economics and Economic Policy, Springer, vol. 17(4), pages 849-876, October.
    13. Brun, Jean-François & Gnangnon, Sèna Kimm, 2017. "Does trade openness contribute to driving financing flows for development?," WTO Staff Working Papers ERSD-2017-06, World Trade Organization (WTO), Economic Research and Statistics Division.
    14. Gnangnon, Sèna Kimm, 2019. "Financial Development and Tax Revenue in Developing Countries: Investigating the International Trade and Economic Growth Channels," EconStor Preprints 206628, ZBW - Leibniz Information Centre for Economics.

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