TITLE:
Uganda’s Trade and Revenue Effects with the EAC Countries, DRC and Sudan
AUTHORS:
Gaalya Micah Samuel
KEYWORDS:
Tariff Rate, Trade Effects, Revenue Effects, EAC Countries, DRC and Sudan
JOURNAL NAME:
Modern Economy,
Vol.6 No.3,
March
12,
2015
ABSTRACT: A WITS partial
equilibrium model is used to perform simulations on Uganda’s trade and revenue
effects with the EAC countries, DRC and Sudan using highly disaggregated HSC
six-digit level trade data. At the zero percent tariff rate, tariff revenue
effects in all country cases were small. At the 25 percent tariff rate, tariff
revenue effects in all country cases simulated were large. This indicates that
the revenue implications of changes of applied rates depend on the applied
tariff rate on imports. High tariff rates show larger revenue effects, while
low tariff rates show lower revenue effects. However higher tariff rates show
lower trade volumes and lower tariff rates high trade volumes.