The theory of trade policy and reform

Rodney Falvey, Udo Kreickemeier

Research output: Chapter in Book/Report/Conference proceedingChapterResearchpeer-review


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 taxesremained, 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.
Original languageEnglish
Title of host publicationPalgrave handbook of international trade
EditorsD Bernhofen, R Falvey, D Greenaway, U Kreickemeier
Place of PublicationUnited Kingdom
PublisherPalgrave Macmillan
Number of pages30
ISBN (Print)9780230217270
Publication statusPublished - 2011


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