Protection and the Own-Funds Window in Tanzania: An Analytical Framework and Estimates of the Effects of Trade Liberalization
Summary:
This paper presents a simple partial equilibrium framework for considering the economic implications of administered protection in Tanzania, against the background of the country’s parallel exchange market and the establishment of the own-funds and open general license (OGL) facilities for authorizing imports. It also presents estimates of the range of possible adjustment in the real exchange rate and trade flows following from a unification of the highly-fragmented import licensing system, coupled with sufficient liberalization of the OGL facility to eliminate own-funded imports and the incentive to export smuggling.
Series:
Working Paper No. 1991/052
Subject:
Exchange rate adjustments Exports Foreign exchange Imports International trade Real exchange rates Trade liberalization
English
Publication Date:
May 1, 1991
ISBN/ISSN:
9781451847154/1018-5941
Stock No:
WPIEA0521991
Pages:
28
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