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Input tariffs and duty drawbacks in the design of tariff reform (English)

This paper analyzes the welfare effects of raising tariffs on inputs, complemented by duty drawbacks on exports, in a small open economy. The main findings of the paper are as follows. First, a tariff on the input unaccompanied by duty drawbacks on exports works like a production tax at different rates on goods using the input. The effect of such a tariff on welfare is ambiguous in general even if the tariffs on final imports are lowered so as to...
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Panagariya,Arvind.

Input tariffs and duty drawbacks in the design of tariff reform (English). Policy, Research, and External Affairs working paper ; no. WPS 336 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/386011468740427934

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