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GTAP Resources: Resource Display

GTAP Resource #2686

"The Impact of Trade Liberalization and Domestic Tax Policies on the Sudanese Economy"
by Siddig, Khalid and Hatim Mahran

Trade policy instruments such as tariffs and quotas have direct and indirect effects on the relative prices of commodities produced in a given country. Trade and domestic tax policies directly affect production structure in economies at the national and global levels. As the mix of goods and services produced change, the demands for factors of production also change. Consequently, in any given economy, it is difficult to conceive a situation where the change in trade policy would affect only one sector. Due to the forward and backward linkages and their related strengths existing in a particular economy, the result is always one in which the relative mix of sectoral outputs change. This by extension affects the relative mix of the different factors of production in the different sectors.
The domestic taxes and/or subsidies also could not be ignored when dealing with macroeconomic and trade policies because the country-level effects on output mix and demands for factors of production can in the context of international trade be extended to the global economy. Changes in relative prices of outputs and inputs resulting in a given country’s change in trade policy are transmitted to the industries and input markets of other economies that the country trades with. Therefore, for trade policy analysis to be meaningful and for robust results to be produced, the interactions that prevail among different sectors as a result of a change in trade policy instruments in a given country or group of countries must be taken into account (Karingi et al., 2006).

Resource Details (Export Citation) GTAP Keywords
Category: 2008 Conference Paper
Status: Published
By/In: Presented at the 11th Annual Conference on Global Economic Analysis, Helsinki, Finland
Date: 2008
Version: Preliminary
Created: Siddig, K. (4/14/2008)
Updated: Siddig, K. (6/21/2009)
Visits: 4,169
- Domestic policy analysis
- The GTAP Data Base and extensions
- Africa (North)
- Africa (Central)
- Africa (East)

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