Advertisement

Effects of Tariff Reduction on Economic Growth

  • Katsufumi Fukuda
Chapter

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.

References

  1. Baldwin, Richard E., and Fr\(\acute{e}\)d\(\acute{e}\)ric Robert-Nicoud. 2008. Trade and Growth with Heterogeneous Firms. Journal of International Economics 74(1): 21–34.CrossRefGoogle Scholar
  2. Baldwin, Richard E., and Rikard Forslid. 1999. Incremental Trade Policy and Endogenous Growth?: A q-Theory Approach. Journal of Economic Dynamics and Control 23(5–6): 797–822.CrossRefGoogle Scholar
  3. Clemens, Michael A., and Jeffrey G. Williamson. 2004. Why Did the Tariff-Growth Correlation Change after 1950?. Journal of Economic Growth 9(1): 5–46.CrossRefGoogle Scholar
  4. Melitz, Marc J. 2003. The Impact of Trade on Aggregate Industry Productivity and Intra-Industry Reallocation. Econometrica 71(6): 1695–1725.CrossRefGoogle Scholar
  5. Vamvakidis, Athanasios. 2002. How Robust is the Growth-Openness Connection? Historical Evidence. Journal of Economic Growth 7(1): 57–80.CrossRefGoogle Scholar
  6. Wacziarg, Romain, and Karen Horn Welch. 2008. Trade Liberalization and Growth: New Evidence. The World Bank Economic Review 22(2): 187–231.CrossRefGoogle Scholar

Copyright information

© Springer Nature Singapore Pte Ltd. 2018

Authors and Affiliations

  1. 1.Hiroshima UniversityHigashihiroshimaJapan

Personalised recommendations