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