Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/75709
Authors: 
Christiansen, Vidar
Smith, Stephen
Year of Publication: 
2001
Series/Report no.: 
CESifo Working Paper 595
Abstract: 
In 1999 the EU abolished duty-free on intra-EU travel, whilst other countries still retain duty-free shopping for international travellers. We address several aspects of duty-free trade, including effects on consumption, revenue and price-setting. From a global perspective we identify the distortions generated by duty-free trade. We review, and dismiss, various arguments that might conceivably support a role for duty-free in promoting global economic welfare. The existence of duty-free trade is explained as a phenomenon that individual countries find in their national self interest as seen both from the arrival and the departure end, i.e. countries have reasons both to admit duty-free goods and to permit their sale to departing passengers.
JEL: 
H00
Document Type: 
Working Paper

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