Previous empirical literature has looked at the effect of trade on capital and labor tax rates or the effect of labor flow on the labor tax rate. However, the theoretical literature suggests that both trade and factor flows can affect capital and labor tax rates simultaneously. This paper...

Sub-Saharan Africa (SSA) is highly dependent on imported capital goods that are used in the import competing industrialized sector. The exporting sector focuses on primary products where land and labor are predominantly used. We build a two-good general equilibrium model, where the import...