Are Uniform Tariffs Optimal?:
This paper analyzes whether uniform tariffs give rise to the highest welfare compared with tariffs that either escalate or de-escalate along the value chain of production. We show that countries may be better off with de-escalating tariffs where tariff rates are higher on intermediate inputs and low...
Gespeichert in:
| 1. Verfasser: | |
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| Format: | Elektronisch E-Book |
| Sprache: | English |
| Veröffentlicht: |
Washington, D.C
International Monetary Fund
2004
|
| Schriftenreihe: | IMF Working Papers
Working Paper No. 04/72 |
| Online-Zugang: | UBW01 UEI01 LCO01 SBR01 UER01 SBG01 UBG01 FAN01 UBT01 FKE01 UBY01 UBA01 FLA01 UBM01 UPA01 UBR01 FHA01 FNU01 BSB01 TUM01 Volltext |
| Zusammenfassung: | This paper analyzes whether uniform tariffs give rise to the highest welfare compared with tariffs that either escalate or de-escalate along the value chain of production. We show that countries may be better off with de-escalating tariffs where tariff rates are higher on intermediate inputs and lower on final goods. The key point is that higher tariffs can encourage agglomeration of intermediate input suppliers and final goods producers in one country. With high tariffs on intermediate inputs, the benefits of close proximity to final goods producers may outweigh the benefits of locating according to comparative advantage, which is more likely when the share of intermediate inputs in producing final goods is high. De-escalating tariffs yield the highest welfare when the benefits of agglomeration are very high. These benefits of agglomeration accrue to both countries in the form of lower prices |
| Beschreibung: | 1 Online-Ressource (19 p) |
| ISBN: | 1451849370 9781451849370 |
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| spelling | Amiti, Mary Verfasser aut Are Uniform Tariffs Optimal? Amiti, Mary Washington, D.C International Monetary Fund 2004 1 Online-Ressource (19 p) txt rdacontent c rdamedia cr rdacarrier IMF Working Papers Working Paper No. 04/72 This paper analyzes whether uniform tariffs give rise to the highest welfare compared with tariffs that either escalate or de-escalate along the value chain of production. We show that countries may be better off with de-escalating tariffs where tariff rates are higher on intermediate inputs and lower on final goods. The key point is that higher tariffs can encourage agglomeration of intermediate input suppliers and final goods producers in one country. With high tariffs on intermediate inputs, the benefits of close proximity to final goods producers may outweigh the benefits of locating according to comparative advantage, which is more likely when the share of intermediate inputs in producing final goods is high. De-escalating tariffs yield the highest welfare when the benefits of agglomeration are very high. These benefits of agglomeration accrue to both countries in the form of lower prices Online-Ausg http://elibrary.imf.org/view/IMF001/00389-9781451849370/00389-9781451849370/00389-9781451849370.xml Verlag URL des Erstveröffentlichers Volltext |
| spellingShingle | Amiti, Mary Are Uniform Tariffs Optimal? |
| title | Are Uniform Tariffs Optimal? |
| title_auth | Are Uniform Tariffs Optimal? |
| title_exact_search | Are Uniform Tariffs Optimal? |
| title_exact_search_txtP | Are Uniform Tariffs Optimal? |
| title_full | Are Uniform Tariffs Optimal? Amiti, Mary |
| title_fullStr | Are Uniform Tariffs Optimal? Amiti, Mary |
| title_full_unstemmed | Are Uniform Tariffs Optimal? Amiti, Mary |
| title_short | Are Uniform Tariffs Optimal? |
| title_sort | are uniform tariffs optimal |
| url | http://elibrary.imf.org/view/IMF001/00389-9781451849370/00389-9781451849370/00389-9781451849370.xml |
| work_keys_str_mv | AT amitimary areuniformtariffsoptimal |