With a few exceptions, Sub-Saharan Africa has failed to benefit adequately from globalization. Fo... more With a few exceptions, Sub-Saharan Africa has failed to benefit adequately from globalization. Following a decade or more of liberalization and policy reform, however, regional players are now becoming competitive in international markets. This promises new investment, employment growth and skill enhancement, all essential foundations of development. SADC Member States have chosen regional integration as part of their strategy for global participation. While not a first best strategy, regionalism can complement more general trade and investment liberalization. Whether this happens will depend on the vision guiding regional integration-whether SADC is viewed as a small extension of protected domestic markets, or as platform for increasing the competitiveness of regional producers in world markets. Unfortunately the SADC Trade Protocol is seriously flawed. Back-loaded and confusingly differentiated tariff reduction schedules are well-known problems. Less clearly understood are the effects of complex and restrictive rules of origin. Rules of origin are required in order to authenticate that goods trading under SADC preferences actually are the result of economic activity in the region. SADC trade negotiators initially agreed on a simple and transparent set of rules for this purpose.
Rules of origin are a key factor determining whether trade agreements meet their objectives. In t... more Rules of origin are a key factor determining whether trade agreements meet their objectives. In the case of SADC, the rules go beyond their function of preventing transshipment of products from third countries, to protect existing industries from increased intraregional competition. Rather than facilitating development through trade, the SADC Trade Protocol replaces transparent and declining tariff barriers in important sectors with complex and more restrictive input sourcing requirements that will diminish trade, increase transactions costs, reduce flexibility of producers and make the region a less attractive place to invest. This paper discusses how a movement towards simple and transparent rules of origin, which are easier to administer and with which it is easier to prove compliance, is likely to stimulate regional integration and facilitate the growth of companies that are able to compete effectively on global markets. The Africa Region Working Paper Series expedites dissemination of applied research and policy studies with potential for improving economic performance and social conditions in Sub-Saharan Africa. The series publishes papers at preliminary stages to stimulate timely discussions within the Region and among client countries, donors, and the policy research community. The editorial board for the series consists of representatives from professional families appointed by the Region's Sector Directors.
Rules of origin are a key factor determining whether trade agreements meet their objectives. In t... more Rules of origin are a key factor determining whether trade agreements meet their objectives. In the case of SADC, the rules go beyond their function of preventing transshipment of products from third countries, to protect existing industries from increased intraregional competition. Rather than facilitating development through trade, the SADC Trade Protocol replaces transparent and declining tariff barriers in important sectors with complex and more restrictive input sourcing requirements that will diminish trade, increase transactions costs, reduce flexibility of producers and make the region a less attractive place to invest. This paper discusses how a movement towards simple and transparent rules of origin, which are easier to administer and with which it is easier to prove compliance, is likely to stimulate regional integration and facilitate the growth of companies that are able to compete effectively on global markets. The Africa Region Working Paper Series expedites dissemination of applied research and policy studies with potential for improving economic performance and social conditions in Sub-Saharan Africa. The series publishes papers at preliminary stages to stimulate timely discussions within the Region and among client countries, donors, and the policy research community. The editorial board for the series consists of representatives from professional families appointed by the Region's Sector Directors.
... Author Info. Bertrand, TJ Flatters, F. ... "Microeconomic distortions : static losse... more ... Author Info. Bertrand, TJ Flatters, F. ... "Microeconomic distortions : static losses and their effect on the efficiency of investment," Policy Research Working Paper Series 665, The World Bank. [Downloadable!]; Sebastian Edwards & Sweder Van Wijnbergen, 1983. ...
Rules of origin are a key factor determining whether trade agreements meet their objectives. In t... more Rules of origin are a key factor determining whether trade agreements meet their objectives. In the case of SADC, the rules go beyond their function of preventing transshipment of products from third countries, to protect existing industries from increased intraregional competition. Rather than facilitating development through trade, the SADC Trade Protocol replaces transparent and declining tariff barriers in important sectors with complex and more restrictive input sourcing requirements that will diminish trade, increase transactions costs, reduce flexibility of producers and make the region a less attractive place to invest. This paper discusses how a movement towards simple and transparent rules of origin, which are easier to administer and with which it is easier to prove compliance, is likely to stimulate regional integration and facilitate the growth of companies that are able to compete effectively on global markets.
Indirect taxes currently account for more than 50 percent of the government of Zambia’s non-capit... more Indirect taxes currently account for more than 50 percent of the government of Zambia’s non-capital recurrent revenues. For 1990, it is estimated that customs duties accounted for about 25 per cent of total indirect taxes, with import sales amounting to 34 per cent, local sales taxes 18 per cent, and excise taxes raising 23 per cent. There are many positive
Trade policies work through their effects on domestic prices of goods and services - by altering ... more Trade policies work through their effects on domestic prices of goods and services - by altering the relationship between domestic and world market prices. Import duties raise domestic prices, while export taxes lower them. Policies that regulate the quantities of imports or exports have an indirect effect on domestic prices. By limiting the amount of a good that can be imported, an import quota creates an artificial scarcity in the local market and hence and raises its domestic price. Prices matter. They are of direct interest to consumers and users of domestic goods. Wheat millers' costs are directly affected by changes in the domestic price of wheat arising from tariffs or restrictions on wheat imports. Final consumers experience the impacts of import duties through higher prices of food and clothing and other protected goods. The effects of trade policies on domestic prices are referred to as the nominal protection arising from trade policies. Changes in nominal protection ...
Rules of origin are a key factor determining whether trade agreements meet their objectives. In t... more Rules of origin are a key factor determining whether trade agreements meet their objectives. In the case of SADC, the rules go beyond their function of preventing transshipment of products from third countries, to protect existing industries from increased intraregional competition. Rather than facilitating development through trade, the SADC Trade Protocol replaces transparent and declining tariff barriers in important sectors with complex and more restrictive input sourcing requirements that will diminish trade, increase transactions costs, reduce flexibility of producers and make the region a less attractive place to invest. This paper discusses how a movement towards simple and transparent rules of origin, which are easier to administer and with which it is easier to prove compliance, is likely to stimulate regional integration and facilitate the growth of companies that are able to compete effectively on global markets.
By Frank Flatters, J. Vernon Henderson and Peter Mieszkowski; Public goods, efficiency, and regio... more By Frank Flatters, J. Vernon Henderson and Peter Mieszkowski; Public goods, efficiency, and regional fiscal equalization.
... Author Info. Bertrand, TJ Flatters, F. ... "Microeconomic distortions : static losse... more ... Author Info. Bertrand, TJ Flatters, F. ... "Microeconomic distortions : static losses and their effect on the efficiency of investment," Policy Research Working Paper Series 665, The World Bank. [Downloadable!]; Sebastian Edwards & Sweder Van Wijnbergen, 1983. ...
... EQUIVALENCE OF OIL TAROS AND QUOTAS UNDER UNCERTAINTY Gideon FISHELSON University of Chicago,... more ... EQUIVALENCE OF OIL TAROS AND QUOTAS UNDER UNCERTAINTY Gideon FISHELSON University of Chicago, Chicago, IL, USA Frank FLATTERS Queen's ... not generally equivalent in their welfare effects, e ad furthermore there is no general presumption in favour of one ...
Administrative corruption, whereby taxpayers and collectors collude to reduce remissions, is cent... more Administrative corruption, whereby taxpayers and collectors collude to reduce remissions, is central to tax evasion in developing countries. A framework is developed for the analysis of such corruption, based on imperfect information concerning true t ax liabilities. Some tolerance of corruption can be part of an efficient collection system, especially when there are constraints on government wages and/or effort is required to learn payers' tax liabilities. With variable collector effort a certain amount of corruption is required, together with a two level penalty structuredismissal if revenue targets are not met, and much heavier penalties for gross corruption.
With a few exceptions, Sub-Saharan Africa has failed to benefit adequately from globalization. Fo... more With a few exceptions, Sub-Saharan Africa has failed to benefit adequately from globalization. Following a decade or more of liberalization and policy reform, however, regional players are now becoming competitive in international markets. This promises new investment, employment growth and skill enhancement, all essential foundations of development. SADC Member States have chosen regional integration as part of their strategy for global participation. While not a first best strategy, regionalism can complement more general trade and investment liberalization. Whether this happens will depend on the vision guiding regional integration-whether SADC is viewed as a small extension of protected domestic markets, or as platform for increasing the competitiveness of regional producers in world markets. Unfortunately the SADC Trade Protocol is seriously flawed. Back-loaded and confusingly differentiated tariff reduction schedules are well-known problems. Less clearly understood are the effects of complex and restrictive rules of origin. Rules of origin are required in order to authenticate that goods trading under SADC preferences actually are the result of economic activity in the region. SADC trade negotiators initially agreed on a simple and transparent set of rules for this purpose.
Rules of origin are a key factor determining whether trade agreements meet their objectives. In t... more Rules of origin are a key factor determining whether trade agreements meet their objectives. In the case of SADC, the rules go beyond their function of preventing transshipment of products from third countries, to protect existing industries from increased intraregional competition. Rather than facilitating development through trade, the SADC Trade Protocol replaces transparent and declining tariff barriers in important sectors with complex and more restrictive input sourcing requirements that will diminish trade, increase transactions costs, reduce flexibility of producers and make the region a less attractive place to invest. This paper discusses how a movement towards simple and transparent rules of origin, which are easier to administer and with which it is easier to prove compliance, is likely to stimulate regional integration and facilitate the growth of companies that are able to compete effectively on global markets. The Africa Region Working Paper Series expedites dissemination of applied research and policy studies with potential for improving economic performance and social conditions in Sub-Saharan Africa. The series publishes papers at preliminary stages to stimulate timely discussions within the Region and among client countries, donors, and the policy research community. The editorial board for the series consists of representatives from professional families appointed by the Region's Sector Directors.
Rules of origin are a key factor determining whether trade agreements meet their objectives. In t... more Rules of origin are a key factor determining whether trade agreements meet their objectives. In the case of SADC, the rules go beyond their function of preventing transshipment of products from third countries, to protect existing industries from increased intraregional competition. Rather than facilitating development through trade, the SADC Trade Protocol replaces transparent and declining tariff barriers in important sectors with complex and more restrictive input sourcing requirements that will diminish trade, increase transactions costs, reduce flexibility of producers and make the region a less attractive place to invest. This paper discusses how a movement towards simple and transparent rules of origin, which are easier to administer and with which it is easier to prove compliance, is likely to stimulate regional integration and facilitate the growth of companies that are able to compete effectively on global markets. The Africa Region Working Paper Series expedites dissemination of applied research and policy studies with potential for improving economic performance and social conditions in Sub-Saharan Africa. The series publishes papers at preliminary stages to stimulate timely discussions within the Region and among client countries, donors, and the policy research community. The editorial board for the series consists of representatives from professional families appointed by the Region's Sector Directors.
... Author Info. Bertrand, TJ Flatters, F. ... "Microeconomic distortions : static losse... more ... Author Info. Bertrand, TJ Flatters, F. ... "Microeconomic distortions : static losses and their effect on the efficiency of investment," Policy Research Working Paper Series 665, The World Bank. [Downloadable!]; Sebastian Edwards & Sweder Van Wijnbergen, 1983. ...
Rules of origin are a key factor determining whether trade agreements meet their objectives. In t... more Rules of origin are a key factor determining whether trade agreements meet their objectives. In the case of SADC, the rules go beyond their function of preventing transshipment of products from third countries, to protect existing industries from increased intraregional competition. Rather than facilitating development through trade, the SADC Trade Protocol replaces transparent and declining tariff barriers in important sectors with complex and more restrictive input sourcing requirements that will diminish trade, increase transactions costs, reduce flexibility of producers and make the region a less attractive place to invest. This paper discusses how a movement towards simple and transparent rules of origin, which are easier to administer and with which it is easier to prove compliance, is likely to stimulate regional integration and facilitate the growth of companies that are able to compete effectively on global markets.
Indirect taxes currently account for more than 50 percent of the government of Zambia’s non-capit... more Indirect taxes currently account for more than 50 percent of the government of Zambia’s non-capital recurrent revenues. For 1990, it is estimated that customs duties accounted for about 25 per cent of total indirect taxes, with import sales amounting to 34 per cent, local sales taxes 18 per cent, and excise taxes raising 23 per cent. There are many positive
Trade policies work through their effects on domestic prices of goods and services - by altering ... more Trade policies work through their effects on domestic prices of goods and services - by altering the relationship between domestic and world market prices. Import duties raise domestic prices, while export taxes lower them. Policies that regulate the quantities of imports or exports have an indirect effect on domestic prices. By limiting the amount of a good that can be imported, an import quota creates an artificial scarcity in the local market and hence and raises its domestic price. Prices matter. They are of direct interest to consumers and users of domestic goods. Wheat millers' costs are directly affected by changes in the domestic price of wheat arising from tariffs or restrictions on wheat imports. Final consumers experience the impacts of import duties through higher prices of food and clothing and other protected goods. The effects of trade policies on domestic prices are referred to as the nominal protection arising from trade policies. Changes in nominal protection ...
Rules of origin are a key factor determining whether trade agreements meet their objectives. In t... more Rules of origin are a key factor determining whether trade agreements meet their objectives. In the case of SADC, the rules go beyond their function of preventing transshipment of products from third countries, to protect existing industries from increased intraregional competition. Rather than facilitating development through trade, the SADC Trade Protocol replaces transparent and declining tariff barriers in important sectors with complex and more restrictive input sourcing requirements that will diminish trade, increase transactions costs, reduce flexibility of producers and make the region a less attractive place to invest. This paper discusses how a movement towards simple and transparent rules of origin, which are easier to administer and with which it is easier to prove compliance, is likely to stimulate regional integration and facilitate the growth of companies that are able to compete effectively on global markets.
By Frank Flatters, J. Vernon Henderson and Peter Mieszkowski; Public goods, efficiency, and regio... more By Frank Flatters, J. Vernon Henderson and Peter Mieszkowski; Public goods, efficiency, and regional fiscal equalization.
... Author Info. Bertrand, TJ Flatters, F. ... "Microeconomic distortions : static losse... more ... Author Info. Bertrand, TJ Flatters, F. ... "Microeconomic distortions : static losses and their effect on the efficiency of investment," Policy Research Working Paper Series 665, The World Bank. [Downloadable!]; Sebastian Edwards & Sweder Van Wijnbergen, 1983. ...
... EQUIVALENCE OF OIL TAROS AND QUOTAS UNDER UNCERTAINTY Gideon FISHELSON University of Chicago,... more ... EQUIVALENCE OF OIL TAROS AND QUOTAS UNDER UNCERTAINTY Gideon FISHELSON University of Chicago, Chicago, IL, USA Frank FLATTERS Queen's ... not generally equivalent in their welfare effects, e ad furthermore there is no general presumption in favour of one ...
Administrative corruption, whereby taxpayers and collectors collude to reduce remissions, is cent... more Administrative corruption, whereby taxpayers and collectors collude to reduce remissions, is central to tax evasion in developing countries. A framework is developed for the analysis of such corruption, based on imperfect information concerning true t ax liabilities. Some tolerance of corruption can be part of an efficient collection system, especially when there are constraints on government wages and/or effort is required to learn payers' tax liabilities. With variable collector effort a certain amount of corruption is required, together with a two level penalty structuredismissal if revenue targets are not met, and much heavier penalties for gross corruption.
Uploads
Papers by Frank Flatters