The welfare consequences of import tariffs: A quantitative perspective

Felbermayr, Gabriel; Jung, Benjamin; Larch, Mario

doi:10.1016/j.jinteco.2015.05.002

Cited by 52 publications

(28 citation statements)

References 32 publications

(63 reference statements)

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Home Welfare The reduction in entry that we have found for a small increase in tariffs, assuming that α < 1, necessarily reduces welfare in (23), but this effect is potentially offset by any increase in output Y H and also by any increase in tariff revenue rebated. Evaluated at the SFTE, the increase in tariff revenue can be calculated from (27) as dT…”

Section: Output and Entrymentioning

confidence: 82%

Tariff Reductions, Entry, and Welfare: Theory and Evidence for the Last Two Decades

Caliendo

Feenstra

Romalis

et al. 2015

View full text Add to dashboard Cite

We use a multi-sector, heterogeneous-firm trade model to study the trade and welfare effects of commercial policy. We show that the effect of tariffs on entry, especially in the presence of production linkages, can reverse the traditional positive optimal-tariff argument. We then use a new tariff dataset, and apply it to a 189-country, 15-sector version of our model, to quantify the trade, entry, and welfare effects of trade liberalization over the period 1990-2010. We find that the impact on firm entry was larger in Advanced relative to Emerging and Developing countries; that more than 90% of the gains from trade are a consequence of the reductions in MFN tariffs (the Uruguay Round); and that for some countries, particularly some Emerging and Developing countries, there are additional gains from a further move to complete free trade. The countries gaining from the elimination of tariffs have a strong rank correlation with those that gain from a negative optimal tariff, which comprise one-quarter of the countries in the world.

show abstract

Section: Output and Entrymentioning

confidence: 82%

Tariff Reductions, Entry, and Welfare: Theory and Evidence for the Last Two Decades

Caliendo

Feenstra

Romalis

et al. 2015

View full text Add to dashboard Cite

show abstract

“… The different effect on firm profit is shown explicitly in Cole (), which has fixed cost heterogeneity with quasi‐linear utility and analyzes how iceberg transport costs and ad valorem tariffs affect the mass of varieties and welfare differently. Schröder and Sørensen () additionally illustrate in a Meltiz () type model how tariffs differ from iceberg transport costs. Neither of these papers highlight this difference in a gravity framework.…”

mentioning

confidence: 99%

“…For a welfare analysis on the differences between per‐unit trade costs versus iceberg see Sørensen (). Felbermayr et al () illustrate the differences in gains from trade between iceberg transport costs and ad valorem tariffs and finds iceberg costs underestimate the gains from trade liberalization with respect to tariffs. Demidova and Rodríquez‐Clare () investigate the optimal import tariff in a Melitz‐type model, but do not focus on the differences between iceberg transport costs and ad valorem tariffs.…”

mentioning

confidence: 99%

Distorted Trade Barriers: A Dissection of Trade Costs in a “Distorted Gravity” Model

Besedeš

Cole

2016

Rev International Economics

View full text Add to dashboard Cite

It is common in the trade literature to use iceberg transport costs to represent both tariffs and shipping costs alike. However, in models with monopolistic competition these are not identical trade restrictions. This difference is driven by how the two costs affect the extensive margin. We illustrate these differences in a gravity model. We show theoretically that trade flows are more elastic with respect to tariffs than transport costs and find a linear relationship between the elasticities with respect to tariffs, iceberg transport costs, and fixed market costs. We empirically validate these results using data on US product-level imports.

show abstract

“…Much attention has been paid to the problems of import dependence penetration in the works by H. Yilmazkuday (2017) [1], G. Felbermayr, B. Jungc, and M. Larchc (2015) [2], H. Kasahara and B. Lapham (2013) [3], P. Collier and A. Venables (2011) [4], S. Cook and Ph.Watson (2011) [5], and K. Barhoumi (2006) [6].…”

Section: Brief Literature Reviewmentioning

confidence: 99%

Assessment of the level of penetration of import dependence in the context of the import substitution policy in Ukraine

Vasyltsiv¹,

Лупак²,

NIKOLCHUK³

2018

EA-XXI

View full text Add to dashboard Cite

Abstract. Introduction. A situation when factors that stimulate an increase in the volume of imports have a growing impact and barrier and compensatory countermeasures are not formed is typical of the current stage of development of the Ukrainian economy. When solving this problem in the context of the import substitution policy in Ukraine, it is necessary to assess the level of import penetration into the domestic market and to find out the dependence of the national economy on its scale. The purpose is to conduct an assessment of the level of import dependence when planning the import substitution policy in Ukraine and to consider the world experience which should be taken into account when implementing it. Methods. As a methodological basis of the study, the authors use the provisions of statistical, structural system and comparative analyses, as well as theories of economic growth, along witgh modern concepts of institutional economy and transitional economic systems. Results. The results of the assessment of the level of penetration of import dependence into the Ukrainian economy are presented in the article, according to which conclusions are drawn about the country's high dependence on the flows of imported goods (services) and the inability of domestic enterprises to produce products which may have a high consumer demand in the domestic market and can compete and replace similar imported products. The authors of the article emphasise the experience of individual, which should be taken into account when planning Ukraine's public policy of import substitution, and suggests a number of appropriate measures which can be successfully implemented with regard to the real state of the national economy. Conclusions. The article reveals a high level of penetration of import dependence in the Ukrainian economy and the relevant negative trends. Given the volume of imported goods (services) flows and the real capacity of the domestic market, the authors determined that the level of import dependence of the national economy is critical. It fluctuated between 54.1% and 65.7% during the period of [2005][2006][2007][2008][2009][2010][2011][2012][2013][2014][2015][2016], and the tendency remains in 2017. Such a situation is also evidenced by the faster growth of imports of goods and services over the country's GDP and the high share of imported goods (services) in GDP (from 48.1% to 60.6%). It has been proposed to focus on the formation and strengthening of structural changes in the Ukrainian economy by creating a suitable institutional environment for this purpose. Keywords: Import Dependence; Import Substitution; Public Policy; Domestic Market; Domestic Production; Competitiveness JEL Classification: F17; F42; H11; O20 DOI: https://doi.org/10.21003/ea.V167-03 Васильців Т. Г. доктор економічних наук, професор, завідувач кафедри фінансів, кредиту та страхування, Львівський торговельно-економічний університет, заступник директора РФ Національного інституту стратегічних досліджень у м. Львові, Львів, Україна Лупак Р. Л. кан...

show abstract

The welfare consequences of import tariffs: A quantitative perspective

Cited by 52 publications

References 32 publications

Tariff Reductions, Entry, and Welfare: Theory and Evidence for the Last Two Decades

Tariff Reductions, Entry, and Welfare: Theory and Evidence for the Last Two Decades

Distorted Trade Barriers: A Dissection of Trade Costs in a “Distorted Gravity” Model

Assessment of the level of penetration of import dependence in the context of the import substitution policy in Ukraine

Contact Info

Product

Resources

About