The Upstream Tariff Simulator (UTAS) : A Tool to Assess the Impact of Tariff Reform on Input Costs and Effective Protection across Sectors

Increased international production fragmentation implies that firms at home rely on imported intermediates for production. In this context, tariff policy design needs to consider the impact downstream of changes in tariffs upstream. Policy makers e...

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Main Authors:	Eberhard-Ruiz, Andreas, Varela, Gonzalo J., Casal, Lucia, Ganz, Federico
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2020
Subjects:	TARIFF POLICY TRADE POLICY INPUT-OUTPUT ECONOMICS SIMULATION TARIFF PROTECTION EFFECTIVE PROTECTION EFFECTIVE RATE OF PROTECTION TARIFF REFORM INPUT MARKET IMPORT INTERMEDIATES
Online Access:	http://documents.worldbank.org/curated/en/304221582227572364/The-Upstream-Tariff-Simulator-UTAS-A-Tool-to-Assess-the-Impact-of-Tariff-Reform-on-Input-Costs-and-Effective-Protection-across-Sectors http://hdl.handle.net/10986/33390

id	okr-10986-33390
recordtype	oai_dc
spelling	okr-10986-333902022-09-20T00:13:33Z The Upstream Tariff Simulator (UTAS) : A Tool to Assess the Impact of Tariff Reform on Input Costs and Effective Protection across Sectors Eberhard-Ruiz, Andreas Varela, Gonzalo J. Casal, Lucia Ganz, Federico TARIFF POLICY TRADE POLICY INPUT-OUTPUT ECONOMICS SIMULATION TARIFF PROTECTION EFFECTIVE PROTECTION EFFECTIVE RATE OF PROTECTION TARIFF REFORM INPUT MARKET IMPORT INTERMEDIATES Increased international production fragmentation implies that firms at home rely on imported intermediates for production. In this context, tariff policy design needs to consider the impact downstream of changes in tariffs upstream. Policy makers embarking on tariff reforms need to answer questions such as: what is the impact of tariff changes on production costs downstream? What are the key input tariffs that could be reduced to lower production costs in priority sectors considering sectors' backward linkages? Or how will a tariff rationalization plan that focuses on tariff reductions in raw materials and intermediates affect effective protection across sectors? This paper presents the Upstream Tariff Simulator, a simple Microsoft Excel–based tool designed to help policy makers answer these questions, by combining information on tariffs and input-output structures and allowing alternative sectoral aggregations, and alternative market structures for input markets. It provides the underlying conceptual framework and a range of examples that show the insights that the tool can provide to policy makers when analyzing the impact of tariff reforms. 2020-02-26T15:33:14Z 2020-02-26T15:33:14Z 2020-02 Working Paper http://documents.worldbank.org/curated/en/304221582227572364/The-Upstream-Tariff-Simulator-UTAS-A-Tool-to-Assess-the-Impact-of-Tariff-Reform-on-Input-Costs-and-Effective-Protection-across-Sectors http://hdl.handle.net/10986/33390 English Policy Research Working Paper;No. 9158 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	TARIFF POLICY TRADE POLICY INPUT-OUTPUT ECONOMICS SIMULATION TARIFF PROTECTION EFFECTIVE PROTECTION EFFECTIVE RATE OF PROTECTION TARIFF REFORM INPUT MARKET IMPORT INTERMEDIATES
spellingShingle	TARIFF POLICY TRADE POLICY INPUT-OUTPUT ECONOMICS SIMULATION TARIFF PROTECTION EFFECTIVE PROTECTION EFFECTIVE RATE OF PROTECTION TARIFF REFORM INPUT MARKET IMPORT INTERMEDIATES Eberhard-Ruiz, Andreas Varela, Gonzalo J. Casal, Lucia Ganz, Federico The Upstream Tariff Simulator (UTAS) : A Tool to Assess the Impact of Tariff Reform on Input Costs and Effective Protection across Sectors
relation	Policy Research Working Paper;No. 9158
description	Increased international production fragmentation implies that firms at home rely on imported intermediates for production. In this context, tariff policy design needs to consider the impact downstream of changes in tariffs upstream. Policy makers embarking on tariff reforms need to answer questions such as: what is the impact of tariff changes on production costs downstream? What are the key input tariffs that could be reduced to lower production costs in priority sectors considering sectors' backward linkages? Or how will a tariff rationalization plan that focuses on tariff reductions in raw materials and intermediates affect effective protection across sectors? This paper presents the Upstream Tariff Simulator, a simple Microsoft Excel–based tool designed to help policy makers answer these questions, by combining information on tariffs and input-output structures and allowing alternative sectoral aggregations, and alternative market structures for input markets. It provides the underlying conceptual framework and a range of examples that show the insights that the tool can provide to policy makers when analyzing the impact of tariff reforms.
format	Working Paper
author	Eberhard-Ruiz, Andreas Varela, Gonzalo J. Casal, Lucia Ganz, Federico
author_facet	Eberhard-Ruiz, Andreas Varela, Gonzalo J. Casal, Lucia Ganz, Federico
author_sort	Eberhard-Ruiz, Andreas
title	The Upstream Tariff Simulator (UTAS) : A Tool to Assess the Impact of Tariff Reform on Input Costs and Effective Protection across Sectors
title_short	The Upstream Tariff Simulator (UTAS) : A Tool to Assess the Impact of Tariff Reform on Input Costs and Effective Protection across Sectors
title_full	The Upstream Tariff Simulator (UTAS) : A Tool to Assess the Impact of Tariff Reform on Input Costs and Effective Protection across Sectors
title_fullStr	The Upstream Tariff Simulator (UTAS) : A Tool to Assess the Impact of Tariff Reform on Input Costs and Effective Protection across Sectors
title_full_unstemmed	The Upstream Tariff Simulator (UTAS) : A Tool to Assess the Impact of Tariff Reform on Input Costs and Effective Protection across Sectors
title_sort	upstream tariff simulator (utas) : a tool to assess the impact of tariff reform on input costs and effective protection across sectors
publisher	World Bank, Washington, DC
publishDate	2020
url	http://documents.worldbank.org/curated/en/304221582227572364/The-Upstream-Tariff-Simulator-UTAS-A-Tool-to-Assess-the-Impact-of-Tariff-Reform-on-Input-Costs-and-Effective-Protection-across-Sectors http://hdl.handle.net/10986/33390
_version_	1764478656687636480

The Upstream Tariff Simulator (UTAS) : A Tool to Assess the Impact of Tariff Reform on Input Costs and Effective Protection across Sectors

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