Macroeconomic Conditions and Import Surcharges in Selected Transition Economies

23 Pages Posted: 13 Feb 2006

See all articles by Piritta Sorsa

Piritta Sorsa

International Monetary Fund (IMF)

Date Written: May 1999

Abstract

Analysis on macroeconomic determinants of protection in the Czech and Slovak Republics, Hungary, and Poland, while subject to many caveats, suggests that appreciation of the real exchange rate was the main macroeconomic determinant of trade policy reversals in the 1990s. This suggests that balance of payments difficulties may have been used as an excuse for protection. The analysis also suggests that greater exchange rate flexibility and tighter fiscal policies could have been used instead of import surcharges to deal with external imbalances. The surcharges may only have aggravated the external balance by slowing down exports and restructuring of production.

Keywords: Trade liberalization, exchange rates

JEL Classification: F13, F49

Suggested Citation

Sorsa, Piritta, Macroeconomic Conditions and Import Surcharges in Selected Transition Economies (May 1999). IMF Working Paper No. 99/62, Available at SSRN: https://ssrn.com/abstract=880589

Piritta Sorsa (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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