Institute of Development Studies

What is the Evidence of the Impact of Tariff Reductions on Employment and Fiscal Revenue in Developing Countries?

The goal of DFID's Systematic Review programme is to provide policy makers and practitioners with a robust assessment of the evidence base as they develop policies and programmes.

The team intends to address the question 'What is the evidence of the impacts of new trade deals on fiscal revenues and job creation in low-income countries?

The question is related to the impact of regional and preferential trade agreements on fiscal revenue and employment in developing countries. The analysis of the impact of tariff reductions on revenue and employment has been extensively analysed in the context of unilateral trade liberalisation in developing countries. The research will explore the extensive empirical literature in this area by using two main methodologies for empirical trade analysis, ex ante partial and general equilibrium simulations and ex post econometric analysis.

• IDS key contact: Xavier Cirera
• Project dates: June 2010 - March 2011
• Project status: Open
• Funder: Department for International Development (DFID)

Researchers

• Xavier Cirera
• Dirk Willenbockel

Selected Outputs

• Cirera, X., Willenbockel, D. and Lakshman, R. (2011) 'What is the Evidence of the Impact of Tariff Reductions on Employment and Fiscal Revenue in Developing Countries?' , London: Department for International Development (DFID)