On Trade Policy Reform and the Missing Revenue: an Application to Mozambique

Channing Arndt and Finn Tarp

No 04-19, Discussion Papers from University of Copenhagen. Department of Economics

Abstract: In many developing countries, large discrepancies exist between revenues implied by published tariff rates multiplied by estimated import volumes and actual receipts. We develop a stylized trade model where average and marginal tariff rates diverge and incorporate insights from this model into a computable general equilibrium model of Mozambique to study the implications of trade policy reform. Model simulations indicate that lowering tariff rates and reducing duty free importation in a manner that maintains official revenue benefits nearly everyone with the main exception being those, who benefited from duty free imports in the base.

Keywords: trade policy; public revenue; Mozambique (search for similar items in EconPapers)
JEL-codes: D58 H26 O55 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2004-10
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:kud:kuiedp:0419

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