Using a CGE Model to Evaluate Import Tariff Reductions in Ukraine

The problem of trade barriers has been important for Ukraine for a long time, since high levels of protection did not allow Ukraine to join world trade organizations like the WTO. This book analyses the impacts of import tariffs reductions on national welfare under the hypothesized condition of Ukraine''s accession to the WTO. The impact of import tariffs reduction is calculated using an input-output table of Ukraine and GAMS computer software. Based on the simple static model, the author concludes that import tariffs significantly decrease welfare and have the highest among other taxes marginal excess burden on consumers.