Protection and the Own-Funds Window in Tanzania: An Analytical Framework and Estimates of the Effects of Trade Liberalization

May 1, 1991

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

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:
https://doi.org/10.5089/9781451847154.001
Issue:
052
Series:
Working Paper No. 1991/052
Stock No:
WPIEA0521991
ISBN:
9781451847154
ISSN:
1018-5941

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