Macroeconomic Consequences of Tariffs /

We study the macroeconomic consequences of tariffs. We estimate impulse response functions from local projections using a panel of annual data that spans 151 countries over 1963-2014. We find that tariff increases lead, in the medium term, to economically and statistically significant declines in do...

Fuld beskrivelse

Bibliografiske detaljer
Hovedforfatter: Furceri, Davide
Andre forfattere: Hannan, Swarnali, Ostry, Jonathan, Rose, Andrew
Format: Tidsskrift
Sprog:English
Udgivet: Washington, D.C. : International Monetary Fund, 2019.
Serier:IMF Working Papers; Working Paper ; No. 2019/009
Online adgang:Full text available on IMF
Beskrivelse
Summary:We study the macroeconomic consequences of tariffs. We estimate impulse response functions from local projections using a panel of annual data that spans 151 countries over 1963-2014. We find that tariff increases lead, in the medium term, to economically and statistically significant declines in domestic output and productivity. Tariff increases also result in more unemployment, higher inequality, and real exchange rate appreciation, but only small effects on the trade balance. The effects on output and productivity tend to be magnified when tariffs rise during expansions, for advanced economies, and when tariffs go up, not down. Our results are robust to a large number of perturbations to our methodology, and we complement our analysis with industry-level data.
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Fysisk beskrivelse:1 online resource (57 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Adgang:Electronic access restricted to authorized BRAC University faculty, staff and students