Contribution to Book
The theory of trade policy and reformPalgrave handbook of international trade
Date of this Version10-3-2011
Document TypeBook Chapter
AbstractExtract:Historically, trade taxes have been an important source of government revenue in subsistence-oriented economies with large informal sectors. As countries developed and economic activity became more market-oriented, governments sourced revenue frorn broader, more efficient tax bases. But trade taxes remained, with protection of domestic import-competing activity, rather than revenue, becoming their primary motivation. This shift of motivation also facilitated the substitution of alternative policies, quantitative restrictions for example, which would limit import competition without necessarily generating revenue.
Citation InformationRodney Falvey and Udo Kreickemeier. "The theory of trade policy and reform" 1stUnited KingdomPalgrave handbook of international trade (2011) p. 265 - 294
Available at: http://works.bepress.com/rodney_falvey/4/