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Tariffs in New Zealand: the economic impacts of retaining tariffs in New Zealand; a dynamic CGE analysis

Ballingall, J, Giesecke, James A ORCID: 0000-0002-7283-0551 and Zuccollo, J (2010) Tariffs in New Zealand: the economic impacts of retaining tariffs in New Zealand; a dynamic CGE analysis. Working Paper. New Zealand Institute of Economic Research (NZIER).

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Abstract

The government announced in late 2009 that it would freeze tariffs at current levels until 2015 at the earliest. We examine the potential costs and benefits to the New Zealand economy of this policy decision using a recently-developed dynamic computable general equilibrium (CGE) model of the New Zealand economy. We find that the elimination of tariffs in New Zealand delivers a very small increase in GDP as allocative efficiency improves. However, the terms of trade effects associated with the tariff removal generate a very small welfare loss. We assess the sensitivity of the welfare results to key elasticity parameters.

Item Type: Monograph (Working Paper)
Additional Information:

NZIER Working Paper 2010/1.
ISSN: 1170-2583

Uncontrolled Keywords: C68 F10; CGE modelling; trade; tariff; New Zealand
Subjects: FOR Classification > 1402 Applied Economics
Faculty/School/Research Centre/Department > Centre of Policy Studies (CoPS)
Depositing User: Symplectic Elements
Date Deposited: 24 Sep 2015 06:49
Last Modified: 15 May 2019 04:36
URI: http://vuir.vu.edu.au/id/eprint/29410
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