Policy Research Working Paper Series: (with an Application to Uruguay)
Federico Changanaquí · Patrick A. Messerlin
Jan 1992 · Policy Research Working Paper Series Issue #3 · World Bank Publications
Ebook
23
Pages
About this ebook
By imposing floor prices on imports, the procedures for reference and minimum export prices jeopardize trade liberalization efforts by creating the impression that tariff cuts are greater than they are. Reference prices add to the distortions created by a pure tariff system, by distorting relative domestic prices - by promoting the domestic consumption of higher- quality goods and the domestic production of lower- quality goods.
By imposing floor prices on imports, the procedures for reference and minimum export prices jeopardize trade liberalization efforts by creating the impression that tariff cuts are greater than they are. Reference prices add to the distortions created by a pure tariff system, by distorting relativ...
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