Activity A: Studies on the fiscal impact of trade liberalization

ECLAC undertook fiscal impact studies of trade liberalization in Latin American countries that requested it.

The studies include a measurement of the weight of tariff revenues in the public budget and the country's GDP; a projection of the reduction of revenues in different periods according to diverse tariff reduction scenarios, and related economic policy proposals.

The studies use a methodology of comparative statics and estimate four feasible effects on revenues: (direct,  indirect, elasticity and substitution) in three tariff reduction scenarios and three economic growth scenarios.