Fiscal Faux Pas?: An Analysis of the Revenue Implications of Trade Liberalization

Khattry, Barsha; Rao, Jyoti

doi:10.1016/s0305-750x(02)00043-8

Cited by 196 publications

(156 citation statements)

References 10 publications

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“…Low income countries rely on imports for raw material, intermediate and final goods this increases demand for exchange rate reserves which are expected to increase import demand. According to [3], a positive relationship is expected between exchange rate reserves and import demand. Therefore exchange rate reserves are expected to increase import demand in Uganda.…”

Section: Model Specification and Equationsmentioning

confidence: 99%

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Trade Liberalization and Disaggregated Import Demand in Uganda

Samuel¹

2015

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Studies investigating determinants of import demand for Uganda present aggregate findings yet there is a need to disaggregate the findings for specific sectors. This creates a research gap on disaggregated findings of import demand. This research attempts to fill this research gap by establishing determinants of import demand using disaggregated sector level data for consumer, intermediate and capital goods. The study estimates the long-run and short-run import demand elasticities for consumer, intermediate and capital goods over the period (1994 to 2012). The results show that there exists a cointegrating relationship between the disaggregated import demand and the following set of variables; relative import price, GDP per capita, real effective exchange rate, foreign exchange rate reserves and trade openness. The long run elasticity appears more responsive to import demand compared to the short-run elasticity. Importantly the effect of a change in trade openness on the volume of imports is positive, suggesting trade liberalization increases import demand.

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Section: Model Specification and Equationsmentioning

confidence: 99%

“…In some cases, some of the policies designed to restrict imports or increase revenue may have the opposite effect. Import demand stability is, in fact, a prerequisite for an effective trade policy [3]. In other words, effective trade policy formulation requires that the change in import demand does not change significantly over time.…”

Section: Introductionmentioning

confidence: 99%

Trade Liberalization and Disaggregated Import Demand in Uganda

Samuel¹

2015

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“…Khattry and Rao also concluded that developing countries experienced declines in their tax to GDP ratios as a result of decreases in tariff revenue after analyzing the tax revenue collections of 80 countries over a 29 year period (Khattry & Rao, 2002). For a multitude of reasons developing countries find it difficult to collect adequate tax revenues.…”

Section: Trade Liberalizationmentioning

confidence: 99%

Determinants of Latin America’s Overreliance on International Trade Taxation

McCoon

2015

AFR

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This paper investigates the determinants of Latin America's overreliance on international trade taxation as a source of governmental revenue. Latin America, more than any other region of the world relies on international trade taxation as a source for governmental revenue. A number of hypotheses are tested including ordinary least squares regressions of the effect of income inequality on the extent to which a country relies on international trade taxation as a source of governmental revenue. It is hypothesized that counties with high levels of income inequality have difficulty collecting income taxes and accordingly disproportionately rely on international trade taxation. The analysis indicates that there is a statistically significant correlation between Latin America's high levels of income inequality and its reliance on international trade taxation as a source of governmental revenue. As a consequence of Latin America's excessive reliance on international trade taxes further trade liberalization in the region will be unlikely.

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“…Therefore, developing economies are more in need of trade revenue to meet their fiscal needs (Stotsky et al, 1999). Further, cut in tariff rate will cause to reduce trade revenue (Khattry & Rao, 2002).…”

Section: Introductionmentioning

confidence: 99%

Trade Liberalization-Trade Revenue Nexus: An Empirical Enquiry of Trade Laffer Curve of Pakistan

Ahmad

2018

SIJMB

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This study tries to explore the trade revenue implication of trade liberalization for Pakistan. Laffer curve approach is used to see the non-linear relationship between trade openness and trade tax revenue. Empirical evidence shows that trade openness has constructive impact on trade tax revenue in linear term. The non-linear relationship has also been explored in the presence of other macroeconomic variables. The marginal impact of non-liner squire trade liberalization has adverse effect on trade tax revenue. In the long run, the empirical investigation proves the existence of inverted U-shaped behavior between trade liberalization and trade tax revenue in Pakistan but this behavior does not exist in short run.

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Fiscal Faux Pas?: An Analysis of the Revenue Implications of Trade Liberalization

Cited by 196 publications

References 10 publications

Trade Liberalization and Disaggregated Import Demand in Uganda

Trade Liberalization and Disaggregated Import Demand in Uganda

Determinants of Latin America’s Overreliance on International Trade Taxation

Trade Liberalization-Trade Revenue Nexus: An Empirical Enquiry of Trade Laffer Curve of Pakistan

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