Tariffs in New Zealand: The economic impacts of retaining tariffs in New Zealand A dynamic CGE analysis
James Giesecke and
James Zuccollo ()
Additional contact information
John Ballingall: NZ Institute of Economic Research
Trade Working Papers from East Asian Bureau of Economic Research
The government announced in late 2009 that it would freeze tariffs at current levels until 2015 at the earliest. We examine the potential costs and benefits to the New Zealand economy of this policy decision using a recently-developed dynamic computable general equilibrium (CGE) model of the New Zealand economy. We find that the elimination of tariffs in New Zealand delivers a very small increase in GDP as allocative efficiency improves. However, the terms of trade effects associated with the tariff removal generate a very small welfare loss. We assess the sensitivity of the welfare results to key elasticity parameters.
Keywords: dynamic computable general equilibrium; New Zealand; tariffs; allocative efficiency; cost benefit analysis (search for similar items in EconPapers)
JEL-codes: F13 F14 C68 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.eaber.org/node/23085 [301 Moved Permanently]--> http://eaber.org/node/23085)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eab:tradew:23085
Access Statistics for this paper
More papers in Trade Working Papers from East Asian Bureau of Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Shiro Armstrong ().