02151nam a22003017u 4500 pwiiw3898 OSt 20260518120109.0 151014t2015 au ||||| |||| 00| ||eng d OSt eng F13 F42 jelc Jovanović, Branimir Tariff-induced (de)industrialization in transition economies: A comparative analysis Wien : Wiener Institut für Internationale Wirtschaftsvergleiche (wiiw), 2015. wiiw Balkan Observatory Working Papers 116 Abstract In this paper we investigate if tariffs affect manufacturing value added in 25 countries from Central and Southeast Europe, the Commonwealth of Independent States and Middle East and North Africa over the period1990-2010. We use an instrumental variable approach, with the World Trade Organization bound tariff and the lagged tariff as instruments. Results suggest that, in general, lower tariffs seem to lead to higher value added, through the higher imports of inputs in the production process which were either inexistent or more expensive on the domestic market previously. The effect is not driven by the World Trade Organization membership, but by individual countries’ decision to lower their tariffs. However, there are notable differences in the effects between different groups of countries and industries: tariffs are not found to affect industrialization in Southeast Europe and Middle East and North Africa, which implies that their decision to liberalize trade was likely premature. This is supported by the finding that lower tariffs have positive effects on industry value added only in industries with higher value added (i.e. more mature industries). industrialization trade liberalization tariffs International Trade, Competitiveness and FDI Macroeconomic Analysis and Policy Petreski, Marjan Velickovski, Igor 116 WIIW0000140 wiiw Balkan Observatory Working Papers https://wiiw.ac.at/p-3898.html P z 8771 8771 0 0 0 0 BIB BIB 1 2015-10-14 pwiiw3898 0 116 1000010003898 2015-10-14 00:00:00 2019-02-05 P