Abstract

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.

Appendix I Summary Measures for the Countries in the Comparative Analysis

Table 8.

Argentina: Summary Measures of Economic Performance and Revenue Trends

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Sources: Argentine authorities; IMF staff estimates; and IMF, International Financial Statistics; and World Economic Outlook (October 1997).

In pesos from 1980 to 1984; in thousands of pesos from 1985 to 1988; in millions of pesos beginning 1989.

Nominal figures are derived from the product of the ratio of the variable to GDP and GDP in national currency

Table 9.

Malawi: Summary Measures of Economic Performance and Revenue Trends

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Sources: Ministry of Finance; IMF staff estimates; and IMF, World Economic Outlook (October 1997).
Table 10.

Morocco: Summary Measures of Economic Performance and Revenue Trends

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Source: Moroccan authorities; IMF staff estimates; and IMF, World Economic Outlook (October 1997).
Table 11.

Philippines: Summary Measures of Economic Performance and Revenue Trends

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Sources: Philippine authorities; IMF staff estimates; and IMF, World Economic Outlook (October 1997).
Table 12.

Poland: Summary Measures of Economic Performance and Revenue Trends

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Sources: Polish authorities: IMF staff estimates; and IMF, World Economic Outlook (October 1997)
Table 13.

Senegal: Summary Measures of Economic Performance and Revenue Trends

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Sources: Senegalese authorities: IMF staff estimates: and IMF, World Economic Outlook (October 1997).

For some years the authorities did not distinguish between VAT on imports and customs duties: for those years the VAT on imports has been estimated and reclassified under VAT.

Appendix II Collected Tariff Rates and Tariff Revenue for Selected Countries

Table 14.

Selected Countries: Collected Tariff Rates

(Tariff revenue of a percent of value of imports)

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Sources: IMF, Government Finance Statistics, various issues, and World Economic Outlook (October 1997); and OECD, Revenue Statistics, various issues, except as noted.Note: Data are unweighted averages.

Last year for which data are available is 1995 for most countries and an earlier year or 1996 for some countries.

Excluding the Czech Republic, Hungary, Luxembourg, and Poland. The OECD data for the countries of the European Union are for tariff collections at the borders of those countries and accordingly differ from the tariff collections on goods used in each EU country to the extent that there is transshipment within the union.

Data provided by the country authorities; and IMF staff estimates.

Korea joined the OECD in December 1996.

Table 15.

Selected Countries: Tariff Revenue

in percent of GDP

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