Occasional Papers

Revenue Implications of Trade Liberalization

Author/Editor:

Reint Gropp ; Liam P. Ebrill ; Janet Gale Stotsky

Publication Date:

July 22, 1999

Electronic Access:

Link to Abstract

Summary:

The apparent contradiction between trade liberalization and continuing high trade tax revenue raises the important question of how, precisely, the one affects the other. Although policymakers generally recognize the long-term benefits of trade liberalization, some have argued for at least a slower pace, in part because of revenue concerns. This paper seeks to address these issues in three complimentary ways: through an overview of the factors that may have a bearing on the question, through a review of trends in trade tax revenue both globally and in selected countries, and through econometric analysis.

Series:

Occasional Paper No. 1999/007

Subject:

Imports International trade Revenue administration Tariffs Taxes Taxes on trade Trade liberalization