Macroeconomic Conditions and Import Surcharges in Selected Transition Economies

Author/Editor:

Piritta Sorsa

Publication Date:

May 1, 1999

Electronic Access:

Download PDF. Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Analysis on macroeconomic determinants of protection in the Czech and Slovak Republics, Hungary, and Poland, while subject to many caveats, suggests that appreciation of the real exchange rate was the main macroeconomic determinant of trade policy reversals in the 1990s. This suggests that balance of payments difficulties may have been used as an excuse for protection. The analysis also suggests that greater exchange rate flexibility and tighter fiscal policies could have been used instead of import surcharges to deal with external imbalances. The surcharges may only have aggravated the external balance by slowing down exports and restructuring of production.

Series:

Working Paper No. 99/62

Subject:

English

Publication Date:

May 1, 1999

ISBN/ISSN:

9781451848274/1018-5941

Stock No:

WPIEA0621999

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

23

Please address any questions about this title to publications@imf.org