EconPapers    
Economics at your fingertips  
 

Why Special Economic Zones? Using Trade Policy to Discriminate across Importers

Matthew Grant

American Economic Review, 2020, vol. 110, issue 5, 1540-71

Abstract: Tariffs are generally assumed to depend on the product, not the identity of the importer. However, special economic zones are a common, economically important policy used worldwide to lower tariffs on selected goods for selected manufacturers. I show this is motivated by policymakers' desire to discriminate across buyers when a tax is intended to raise prices for sellers, through a mechanism distinct from existing theories of optimal taxation. Using a new dataset compiled from public records and exogenous changes in imports of intermediate goods, I find the form, composition, and size of US zones are consistent with the theory.

JEL-codes: F13 F14 L60 R32 (search for similar items in EconPapers)
Date: 2020
Note: DOI: 10.1257/aer.20180384
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.aeaweb.org/doi/10.1257/aer.20180384 (application/pdf)
http://doi.org/10.3886/E115282V1
https://www.aeaweb.org/doi/10.1257/aer.20180384.appx (application/pdf)
https://www.aeaweb.org/doi/10.1257/aer.20180384.ds (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aea:aecrev:v:110:y:2020:i:5:p:1540-71

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

Access Statistics for this article

American Economic Review is currently edited by Esther Duflo

More articles in American Economic Review from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().

 
Page updated 2020-07-01
Handle: RePEc:aea:aecrev:v:110:y:2020:i:5:p:1540-71