Fiscal constraints, collection costs, and trade policies (anglais)

That free trade allows economies in an ideal world to achieve the greatest possible welfare is one of the few undisputed propositions in economics. In reality, however, free trade is rare. The author argues that many developing countries intervene in trade at least partly to raise revenues, and that episodes of trade liberalization are often linked to tax reform. The author proposes a formal model to explain why developing countries rely disproportionately...
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