Decomposed analysis of import tax changes in Ghana
African Journal of Economic and Management Studies
ISSN: 2040-0705
Article publication date: 12 April 2011
Abstract
Purpose
The purpose of the paper is to investigate the quantitative effect of import liberalization on tariff revenue in Ghana.
Design/methodology/approach
In an attempt to achieve the objective of the paper, a robust decomposition analytical approach was used to examine how different components of the sources of change in import tax contribute to changes in import tax revenue in Ghana.
Findings
The paper concludes that Ghana suffered some revenue loss from the liberalization by reducing the level of average official duty rates, but gained in revenue as a result of real currency depreciation.
Practical implications
It has been suggested that public policy should aim at determining and targeting the optimum level of the average official import duty rates, focus on the identification of the major sources of duty revenue leakage, and substitute sales taxes for tariffs to improve tax revenue sufficiently.
Originality/value
This paper makes explicit the contribution of alternative import policy features to changes in import tax revenue in Ghana.
Keywords
Citation
Kwasi Obeng, C., Gabriel Brafu‐Insaidoo, W. and Ahiakpor, F. (2011), "Decomposed analysis of import tax changes in Ghana", African Journal of Economic and Management Studies, Vol. 2 No. 1, pp. 9-23. https://doi.org/10.1108/20400701111110740
Publisher
:Emerald Group Publishing Limited
Copyright © 2011, Emerald Group Publishing Limited