Import Tariffs Essay

Constantin Freiherr von Stackelberg

Michaelhouse School

“Do import tariffs increase welfare in emerging economies?”

About:

-Consists of the Introduction, Literature review and Methodology

-The References needed are to be found before the article summaries in the literature review

Motivation why this was chosen and aim (Introduction):

The aim of this research task is to examine if and how you can improve economic welfare and growth through import tariffs and to identify which theories and methods of using import tariffs are the best suited to increase economic growth in a developing country. An import tariff is a tax imposed on imported goods and services (investopaedia). This paper will use GDP per capita as a proxy in measuring economic welfare of people and more specifically it will examine how the differences in applying import tariffs can lead to significant differences in their impact on economic growth developing countries.

The two economic theories that will mainly be looked at and examined are the “Classical Keynesian Theory” and the Import Substitution Industrialization Theory”. It will argue that these theories do not work well independently of one another. For instance, Malaysia (a country that has its own unique way of using import tariffs to help their economy grow) will serve as a case study to help discuss how import tariffs can help the welfare of a county.

This topic was chosen because import tariffs are often controversial as they can increase growth as domestic industries are protected from outside competition on the one hand while they pose a threat to global free trade by distorting prices to the disadvantage of the consumer. One example is the European Union (EU) which has created...

... middle of paper ...

...ves of import tariffs?

How are import tariffs used to increase an economies GDP?

In terms of protection are import tariffs the most effective barriers to entry?

Would import tariffs go under the topic of an imperfect market?

Which country used import tariffs to the largest and most effective extent?

In South Africa has there recently been an issue on import tariffs that made a difference in the economy?

What does the World Trade Organization have to do with import tariffs?

Is the European Union or the Southern African custom union better in the way they set about import tariffs and why is the way they use them better?

What exactly are the classic Keynesian theory and the Import Substitution theory?

What would you say is what they call the ‘Optimum Tariff’?

A list of possible references and resources:

This will be done when all the information is collected.