THEORETICAL RESEARCH OF INTERNATIONAL TAX HARMONISATION UNDER IMPERFECT COMPETITION

In this Project, We investigated the welfare consequences of the tariff and the commodity taxes harmonisation under imperfect competition. The main results of the research are summarised as follows :(1) the tax harmonisation is recommended in term of the world welfare under imperfect competition ;(2) in an international oligopoly, existence of public goods acts as a key factor for tax harmonisation ;(3) if the related countries can vary some policy instruments, Pareto-improving harmonisation must be restricted.