Showing 7 results for Tariff
Volume 0, Issue 0 (1-2024)
Abstract
The present study evaluated the effects of reducing agricultural tariffs in different scenarios on food security and macroeconomic variables that using a computable general equilibrium model and data from Afghanistan's social accounting matrix. The effects of reducing tariffs were evaluated at 80%, 60%, 40%, 20%, and 100% (full liberalization). The results of this study showed that imports and consumption of cereals, fruits, vegetables, and livestock are gradually increased for households. Additionally, the increased purchasing power of households led to an increased demand for food, which improved food security and ultimately the health of households and society. Therefore, support for special facilities in the field of eliminating tariffs on agricultural products is essential.
Mrs Fatemeh Etemadmoghadam, Dr Majid Sameti, Dr Sara Ghobadi, Dr Mansour Mahinizadeh,
Volume 0, Issue 0 (12-2024)
Abstract
Aim and Introduction
There are many models and tools to communicate with the international economy and use its capacity to exploit for the benefit of the domestic economy. One of these famous models is the establishment of free zones and attracting international capital through these areas. According to the definition in the Kyoto Convention, a free economic zone is a part of the mainland where the exchange of goods is considered beyond the existing restrictions in the mainland and is not bound by the customs and tax laws of the mainland. Free zones have different economic regulations from other parts of the mainland. The differences can provide the basis for attracting capital, commercial prosperity, and economic growth. To grow and develop these areas, countries use various incentives such as legal, tax, customs, and financial incentives.
Methodology
The term general equilibrium in this method means that all the markets included in this structure must be in balance. In other words, the market settlement condition must be established. This means that in the general equilibrium model, all variables are assumed to be endogenous and non-constant, and this is contrary to the partial equilibrium structure, where the variables of other markets are assumed to be constant. This research analyzes the impact of customs exemption on imported goods in free zones in the form of the DSGE method with a neoclassical pproach. All the relationships necessary to explain the effectiveness of this incentive according to the theoretical foundations, the selected goals of the establishment of regions in Iran and their performance have been stated, and other relationships in other economic sectors have been considered to complete the model. The parameters of the model are also estimated according to the calibration method and using calculation software and econometric estimation. The performance of the model is evaluated by comparing the widths obtained from the simulation of the model and the torques of the real data. Finally, the simulation of the model can be seen by applying impulses.
Findings
In this study, the simulation of customs duty exemption impulses in free zones shows that applying impulses to increase import exemptions to free zones, leads to an increase in foreign direct investment, an increase in capital accumulation, an increase in exports of free zones, and finally, an increase in employment. As the export in free zones increases, the export of products from the mainland decreases.
Discussion and Conclusion
The results of applying the impulse effect of reducing import tariffs in free zones indicate that the intensity of the increase in the exemption of import tariffs for goods to free zones leads to an increase in foreign direct investment, an increase in the amount of investment, an increase in capital accumulation, an increase in the export of free zones and finally, the increased employment rate. In terms of export and domestic production, with the application of tariff reduction, imports in free zones will increase and exports from the mainland will decrease, and due to the weight of exports from the mainland compared to free zones, the total exports of the country will decrease
Volume 9, Issue 1 (1-2009)
Abstract
In this paper a macroeconomic approach is derived to develop a long run electricity demand model to analyze the main factors affecting electricity demand in the Islamic Republic of Iran. According to the definition of a demand function, electricity demand, in general, is determined by some main factors including gross domestic product (GDP), prices, etc. This paper, by analyzing the specific political and economical conditions in the Iran, introduces electricity intensity and a dummy variable WAR into the electricity demand forecasting model. A binary dummy variable, WAR is applied to correct the model (between the years 1980-1988 during the Iran and Iraq war). In this study, two popular econometric techniques namely unit root test and cointegration model is derived for modeling the electricity demand. Cointegration is established between kWh and, respectively, GDP, electricity price, electricity intensity, and WAR as a dummy variable. The results show that although GDP is still the most important factor for electricity demand, electricity demand is negatively related to efficiency improvement and tariffs in Iran.
Ameneh Zoghipour, Mansour Zibaei,
Volume 9, Issue 3 (10-2009)
Abstract
Computable general equilibrium (CGE) models have become a standard tool of empirical economic analysis and were extensively used to assess the impact of trade liberalization by policy analysts. In this study, the effects of imports tariff reduction as a trade liberalization index are investigated on key economic variables using computable general equilibrium approach. The data used in this study are obtained from the social accounting matrix of year 2001 in which parameters of model are calibrated accordingly.
Results of simulations show that if the imports tariff rate is cut by 50% and 100% across all sectors, total supply and investment will reduce while total exports, total imports, household income and consumption will increase.
Majid Maddah, Somayeh Nematollahi,
Volume 13, Issue 3 (9-2013)
Abstract
Tax evasion linked to imports is a cause for forming informal economy. Tax evasion decreases government revenue and makes restrictions in implementing economic policies. This paper investigates relationship between the tariff rate and tax evasion at the six- digit HS level on trade data of Iran and its twelve major trading partners during 2003 to 2008. According to Bhagwati method, Tax evasion is defined as the discrepancy between the value of imports, reported by Iran, and the value of exports to Iran, reported by its trading partners. The results from estimated tax evasion models show that there is positive and significant relationship between the trading discrepancies or tax evasion and tariff rates among 27917 products. The elasticity of tax evasion with respect to tariff rates is 0.67, i.e. each one-percentage-point increase in the tariff rates raises tax evasion by 0.67 percent in case of total products. Additionally, the elasticity of tax evasion with respect to tariff rates is 0.8 for goods having tariff rates above average. In this case, tax evasion is more likely. The positive impact of tariff rate on tax evasion is not verified for goods having tariff rates lower than average.
Volume 16, Issue 7 (11-2014)
Abstract
Interest rate Ad valorem tariffs are considered as the most prominent trade tools extensively used in the framework of Spatial Equilibrium Models (SEMs) to analyze agricultural and food trade policies around the world. However the results obtained from such models have been criticized because of their inadequacy in producing any observed data within the base period. Hence a positive spatial and temporal trade model which incorporates ad valorem tariffs was developed throughout the ongoing study. The calibrated model helps researchers to perform a substantially flawless empirical trade study in the real world. A numerical example is finally presented at the end of the article to justify the findings of the model, and to compare welfare analysis of the calibrated vs. the uncalibrated model.
Mohammad Kiani de Kiani, Dr Seyed Habibollah Mousavi, Dr. Sadegh Khalilyan,
Volume 18, Issue 1 (4-2018)
Abstract
The possible costs and benefits of trade liberalization generate essential problems for the developing countries and make free trade dubious. A major problem for developing countries is to create jobs in sectors supported indirectly by imposing import tariffs. This study aims to investigate the potential effects of the tariffs’ elimination of agricultural imports on the job creation of this sector and other sectors using 2011 input-output table. For the whole economy, the results show that private sector experiences 5.5% and 9.81% reductions in direct and indirect employment, respectively. On the other hand, public sector faces with 2.63% and 4.59% reductions in direct and indirect employment, respectively. According to findings, the reduction in direct employment is bigger than that of indirect employment.
