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Taxes, Relative Prices and Trade

In: The Economics of Relative Prices

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  • James R. Melvin

    (University of Western Ontario)

Abstract

In this paper, I consider some of the relationships between domestic taxes, relative commodity prices and international trade. The order in which I have listed these three factors is significant, for the basic premise will be that domestic taxes influence the relative prices of domestic commodities, and that this in turn may have a substantial effect on international trade. Indeed, it will be argued that in some circumstances taxes may be one of the most significant determinants of trade patterns.

Suggested Citation

  • James R. Melvin, 1984. "Taxes, Relative Prices and Trade," International Economic Association Series, in: Béla Csikós-Nagy & Douglas Hague & Graham Hall (ed.), The Economics of Relative Prices, chapter 7, pages 183-204, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-349-06265-2_7
    DOI: 10.1007/978-1-349-06265-2_7
    as

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