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http://hdl.handle.net/10419/65479
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| Title: | | Price transmission, domestic relative incentives and inter-sector resource flow analysis  |
| Authors: | | Zgovu, Evious K. |
| Issue Date: | | 2003 |
| Series/Report no.: | | CREDIT Research Paper 03/21 |
| Abstract: | | This paper models the implications of partial pass-through of tariff/subsidy-inclusive border prices for the domestic relative incentive structure and inter-sector resource flow. The paper shows that partial pass-through reduces nominal protection, affects substitutability in the economy and ultimately the pattern of relative sectoral incentives. In general, the smaller the pass-through the smaller the lowering of pro-importables and anti-exportables incentive biases after tariff reforms. Consequently, commercial policy is unlikely to achieve full extent of inter-sector resource flows, at least in the short-term. Sluggish export supply response to tariff reforms in developing countries could be due to major pass-through problems. |
| Document Type: | | Working Paper |
| Appears in Collections: | | CREDIT Research Papers, The University of Nottingham
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