International Advances in Economic Research

, Volume 6, Issue 3, pp 578–580 | Cite as

On tariffs and smuggling

  • Yeong-Her Yeh


The purpose of this paper is to show that if a country wants to eliminate smuggling, it may have to increase rather than decrease the tariff. This paradoxical case could take place if the country in question is large and the foreign elasticity of demand for imports is inelastic.


Economic Growth International Economic Paradoxical Case 
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  1. Bhagwati, Jagdish N.; Hansen, B. "A Theoretical Analysis of Smuggling,"Quarterly Journal of Economics, 87, 2, May 1973, pp. 172–87.Google Scholar
  2. Bhagwati, Jagdish N.; Panagariya, Arvind; Srinivasan, T. N.Lectures on International Trade, Cambridge, MA: MIT Press, 1998, pp. 476–81.Google Scholar
  3. Meade, James E.A Geometry of International Trade, London, United Kingdom: George Allen and Unwin, 1952.Google Scholar

Copyright information

© International Atlantic Economic Society 2000

Authors and Affiliations

  • Yeong-Her Yeh
    • 1
  1. 1.University of HawaiiUSA

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