Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/187336 
Year of Publication: 
1998
Series/Report no.: 
PIDS Discussion Paper Series No. 1997-17
Publisher: 
Philippine Institute for Development Studies (PIDS), Makati City
Abstract: 
Contrary to usual expectations, it can be shown that the aggregate output can increase from the imposition of a uniform tariff rate and that the 5% uniform tariff rate improves resource allocation within the tradable sectors due to relative price changes. This is done through the Trade model using an I-O framework and through the Simulation Model. While substantial benefits are reaped from the low uniform tariff rate in terms of improved sectoral output, a deterioration of trade deficit is expected. Whether the low uniform rate translates to higher tax collection still depends heavily on tax compliance.
Subjects: 
uniform tariff rate
input-output framework
Document Type: 
Working Paper

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