英文摘要 |
Tariff escalation becomes one of the major issues in the new Doha Round negotiation because it is viewed as a stumbling block to the industrialization development for the developing countries. The major purpose of this study is to examine the degrees of escalations in Taiwan's agricultural-related commodities and the economic consequences to reduce them. A simplified theoretical model is first established to illustrate the structural impacts and welfare implications of reducing tariff escalation. Then a computable general equilibrium model of Taiwan is applied to simulate the quantitative impacts of three alternative reduction proposals. The empirical results indicate that if welfare improvement is the major policy concern, then Taiwan should favor the reduction because it improves the overall welfare of Taiwan. However, if farmers' welfare is the major policy concern, then Taiwan should act against the reduction. In case the consensus to reduce tariff escalations has been determined, then the second-best choice is to offer upstream industries relatively smaller tariff reduction rates than the downstream industries. |