Protection and the Own-Funds Window in Tanzania: An Analytical Framework and Estimates of the Effects of Trade Liberalization
May 1, 1991
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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.
Subject: Exchange rate adjustments, Exports, Foreign exchange, Imports, International trade, Real exchange rates, Trade liberalization
Keywords: exchange rate, Exchange rate adjustments, export, export smuggling, export supply, Exports, import, import demand, import facility, import liberalization program, Imports, liberalization, Middle East, OGL imports, Real exchange rates, Sub-Saharan Africa, supply schedule, Trade liberalization, WP
Pages:
28
Volume:
1991
DOI:
Issue:
052
Series:
Working Paper No. 1991/052
Stock No:
WPIEA0521991
ISBN:
9781451847154
ISSN:
1018-5941
