Fiscal Dimensions of Trade Policy

36 Pages Posted: 15 Feb 2006

See all articles by Ziba Farhadian-Lorie

Ziba Farhadian-Lorie

affiliation not provided to SSRN

Menachem Katz

International Monetary Fund (IMF)

Date Written: May 18, 1988

Abstract

This paper assembles findings on the use of trade taxes, examines the main contributing factors, and reviews the fiscal aspects of trade policy as they relate to both efficiency and macroeconomic stabilization. It demonstrates why trade taxes would generally not be part of an optimal tax package, and describes the conditions under which they could be used and what their structure would be. The paper also reviews the channels of the effects of trade taxes under fixed and flexible exchange rates, and concludes that the distortions and welfare loss that they create put them at a disadvantage vis-à-vis other fiscal and exchange rate policies.

JEL Classification: 4110, 3200, 1220, 4313

Suggested Citation

Farhadian-Lorie, Ziba and Katz, Menachem, Fiscal Dimensions of Trade Policy (May 18, 1988). IMF Working Paper No. 88/43, Available at SSRN: https://ssrn.com/abstract=884776

Ziba Farhadian-Lorie (Contact Author)

affiliation not provided to SSRN

No Address Available

Menachem Katz

International Monetary Fund (IMF)

700 19th Street, N.W.
Washington, DC 20431
United States

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