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Tariffs and the Macroeconomy: Some Empirical Evidence

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  • International Monetary Fund

Abstract

This paper examines the macroeconomic impact of tariffs. Existing theoretical models do not provide clear-cut predictions concerning the co-movement between unilateral tariff changes and a set of macroeconomic variables consisting of the real exchange rate, the trade balance, and the level of output. Three different data sets are found to be consistent with the hypothesis that tariffs have no statistically significant impact on the trade balance, the real exchange rate, or the level of output.

Suggested Citation

  • International Monetary Fund, 1989. "Tariffs and the Macroeconomy: Some Empirical Evidence," IMF Working Papers 1989/070, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:1989/070
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