Effects of tariffication : tariffs, quotas and VERs under monopolistic competition

Arbeitspapier

Recent rounds of GATT and later WTO have advocated widespread tariffication, meaning that existing non-tariff barriers be converted into import equivalent tariffs. From an economic point of view, the effects of such tariffication are not entirely clear. The paper presents a general equilibrium model with monopolistic competition to examine the welfare effects of tariffication. The ranking of pre- and post-tariffication welfare depends crucially on the nature of the initial trade barrier and the tariff tool applied. Tariffication using a specific (an ad valorem) tariff results in the same (a reduced) welfare level compared to an initial quota, whereas welfare is increased (the same) compared to an initial VER.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: DIW Discussion Papers ; No. 269

Classification and Topics

• Classification: Wirtschaft ; Trade Policy; International Trade Organizations ; Models of Trade with Imperfect Competition and Scale Economies; Fragmentation ; International Economic Order and Integration
• Subject: Trade policy ; tariffication ; specific tariff ; ad valorem tariff ; quota ; VER ; Nichttarifäre Handelshemmnisse ; Zollpolitik ; Tariffication ; Außenhandelsliberalisierung ; Wohlfahrtseffekt ; Monopolistischer Wettbewerb ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Jørgensen, Jan G. ; Schröder, Philipp J. H.
• Event: Veröffentlichung
• (who): Deutsches Institut für Wirtschaftsforschung (DIW)
• (where): Berlin
• (when): 2002

Further information

• Handle: http://hdl.handle.net/10419/18253
• Last update: 10.03.2025, 11:43 AM CET