Relationship between the reduction of global import tariffs and economic growth: An empirical approach (#463)
Read ArticleDate of Conference
July 17-19, 2024
Published In
"Sustainable Engineering for a Diverse, Equitable, and Inclusive Future at the Service of Education, Research, and Industry for a Society 5.0."
Location of Conference
Costa Rica
Authors
Rodríguez Abraham, Antonio Rafael
García Juárez, Hugo Daniel
Cruz Salinas, Luis Edgardo
Abstract
The purpose of this research was to empirically determine whether the reduction of global import tariffs (GIT) influenced the economic growth of Peru for the period 1980-2022. To this end, an econometric model was constructed to analyze the relationship between GIT (represented by the average nominal tariff) and economic growth (represented by per capita GDP). The sample consisted of 43 observations on an annual basis. The study adopts a quantitative approach, is ex post facto, non-experimental, and longitudinal in design. The estimations reveal that a 1% reduction in GIT can increase per capita GDP by 14.7%. Additionally, the study identified other explanatory variables of economic growth, such as terms of trade, final government consumption, GDP of Peru's major trading partners: the United States, China, European Union and Mercosur.