In this paper we estimate the amount of tax evasion in customs authorities in both Kenya and Tanzania by calculating measurement errors in reported trade flows between the two countries and correlate those errors with tax rates. We find that the measurement error is correlated with the tax rates...

The recent hike in food prices has been of great concern to policymakers, international organisations and donor agencies. In this paper we discuss, both from a partial and general equilibrium perspective, the impact of the recent price increase on maize on Kenyan households. Simulating a 100%...

The spread of value-added tax (VAT) in developing countries has been dramatic since the beginning of 1990’s. Adopted by more than 130 countries, including many of the poorest, VAT has been, and remains, the key of tax reform in many developing countries. While adopting VAT, there are arguments...

This report focuses on trade and exchange rate policies in Tanzania. The composition of Tanzanian exports has changed dramatically since early 2000. In examining the determinants of trade with a particular focus on Tanzanian exports, we found that changes in the real exchange rate did not have a...