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GTAP Resources: Resource Display

GTAP Resource #3359

"Estimations of Tariff Equivalents for the Services Sectors"
by Fontagné, Lionel, Guillin Amelie and Maria Cristina Mitaritonna


Abstract
Methodological issues arising with the estimation of tariff equivalents of barriers to services trade are of high policy relevance. These equivalents are extensively used to compute welfare gains and resource reallocation associated with the partial liberalization of the sector and any measurement error will strongly affect the estimated gains.

Using the most recent release of the GTAP (2004), we rely on the so-called quantity based methods to derive tariff equivalents from a gravity equation estimated at the sectoral level, based on the importer fixed effects coeffcients, for nine services sectors and a large set of countries.

Beyond providing these tariff equivalents, the objective of the paper is threefold. Firstly, we estimate trade equations in cross section and improve on the methodology of Park (2002) to compute ad valorem equivalents of barriers to services trade. Secondly we ask whether relying on a cross section rather than on panel data leads to differences in estimated equivalents. Lastly, we confront estimations performed with reconstructed data and actual data. We conclude that while utilizing reconstructed data (such as GTAP) affects the results, the equivalents obtained characterize properly the magnitude of protection in services


Resource Details (Export Citation) GTAP Keywords
Category: 2010 Conference Paper
Status: Published
By/In: Presented at the 13th Annual Conference on Global Economic Analysis, Penang, Malaysia
Date: 2010
Version:
Created: Fontagné, L. (4/15/2010)
Updated: Batta, G. (6/3/2010)
Visits: 2,883
No keywords have been specified.


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Comments (1 posted)
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Posted by: van der Geest, Willem   6/19/2010 2:29:00 PM
excellent presentation - will be hepful for our selection of sectors to study NTMs - thnx W.