Analysis on Rationality Tariff Levels of Effective Protection in China——Based on the Tariff Effective Protection Rate and Lafay Index

After entering into WTO,China has experienced the adjustment of tariff rate twice on the large scale,leading to the very significant change of tariff level and structure,while the analysis of reasonability of EPR is quite important to the formulation and adjustment of tariff policy and industrial policy.This paper empirically analyzes the tariff effective protection level and structure in China by calculating the ERP of tariff and Lafay index of the 24 input-output sectors in 5 years.The result shows that the ERP of tariff of the 23 input-output sectors which belong to the industry is upgrading from the upstream products to the downstream products.The tariff structure in China is reasonable on the whole.But the very high tariff protection costs are increasing rapidly every year and the tariff effective protection level and structure of some input-output sectors don't fit their dynamic change of comparative advantages.So this paper gives such advice as optimizing the tariff effective protection structure,shortening the gap of the ERP of input-output sectors and strengthening technological innovation and investment while improving the flexibility of policy.