Abstract
This paper examines the effects of increases in ad-valorem tariffs on economic growth in a growth and trade model with firm heterogeneity. We show that increases in ad-valorem tariffs from zero tariffs with no iceberg cost and identical sunk costs for domestic and foreign markets leads to lower growth rate.
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Fukuda, K. (2018). Effects of Tariff Reduction on Economic Growth. In: Hosoe, M., Kim, I., Yabuta, M., Lee, W. (eds) Applied Analysis of Growth, Trade, and Public Policy. Springer, Singapore. https://doi.org/10.1007/978-981-13-1876-4_10
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DOI: https://doi.org/10.1007/978-981-13-1876-4_10
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Publisher Name: Springer, Singapore
Print ISBN: 978-981-13-1875-7
Online ISBN: 978-981-13-1876-4
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