Tariffs, wrong way to raise revenue: Harvard academic
and developing worlds, where significantly lower tariffs have boosted exports as well as imports and propelled economic growth.
Talking specifically about Sri Lanka, he showed how exports have declined since 2000, outweighing the possible gains from decline in imports. In fact Sri Lanka’s exports as a percentage of GDP have been in a freefall, from 33.3 percent in 2000 to 12.7 percent in 2016.
“Sri Lanka was able to grow its exports until about 2000 quite merrily. But since 2000 exports have dropped by 20 percent.
So what happened? Well, what we do know is what happened to tariffs. They were used to raise revenue.
Prof. Robert Lawrence PIC BY KUSHAN PATHIRAJA