The Political Economy of Manufacturing Protection by Garnaut Ross. Garnaut Ross Findlay Christopher & Ross Garnaut

Author:Garnaut, Ross.,Garnaut, Ross,Findlay, Christopher & Ross Garnaut
Language: eng
Format: epub
ISBN: 9781315098357
Publisher: Taylor & Francis (CAM)
Published: 2017-09-20T00:00:00+00:00

Notes:

a SI-0 1973 stands for Singapore Input-Output Table 1973.

b Adjusted by excise taxes. For example, although import duties on petroleum are extremely high, they have no protective effects, as excise duties are applied at the same rates as import duties. For other commodities, excise duties are less than import duties. The government only began to harmonise excise duties with import duties from March 1980. The two commodities affected were cigarettes and tobacco. Yet the process was not completed. (see Bela Balassa, and Associates, The Structure of Protection in Developing Countries, (Baltimorez Johns Hopkins Press, 1971), p. 13).

Rates of protection

Nominal rates

Nominal rates of protection are rates imposed on imports entering the Singapore market. They are stated in the Custom Duties Order in terms of percentages of import prices, or some fixed dollar values per unit of import, or both when the rate which gives the greater revenue would be applied. Specific rates could be translated into ad valorem rates if we know the import prices. As a first approximation of degree of protection for certain commodity groups for 1979, the nominal rates of protection are given in Table 5.5.

ERPs based on the Corden and Balassa methods are reported for comparison. The effective rates are calculated for 1979, the most recent year when a complete listing of commodities subject to tariff is available. At the time of writing, the lastest input-output table available was drawn up in 1973. Input output coefficients are taken to be fixed between 1973 and 1979.

It was noted above that to promote industrial expansion, local manufacturers were given generous duty exemption on raw materials where local substitutes were not available. However, as we have no information on duty exemption for these inputs, the ERPs reported in this report are biased as they are calculated on the assumption that no duty exemption was extended to inputs.

Table 5.6 Averagea nominal and effective rates of protection, Singapore, 1979

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