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GTAP Resource #4093

"Trade Restrictiveness Indices in Presence of Externalities: An Application to Non-Tariff Measures"
by Beghin, John, Anne-Célia Disdier and Stephan Marette


Abstract
We extend the trade restrictiveness index approach to the case of market imperfections and domestic regulations addressing them. We focus on standard-like non-tariff measures (NTMs) affecting cost of production and potentially enhancing demand by increasing product quality or reducing negative externalities. We apply the framework to the database of Kee et al. (2009) and derive ad valorem equivalents (AVEs) for NTMs. Half of the product lines affected by NTMs exhibit negative AVEs, indicating a net trade-facilitating effect of NTMs. Accounting for these effects significantly reduces previous measures of countries’ trade policy restrictiveness obtained while constraining NTMs to be trade reducing.


References :
Kee, Hiau Looi, Alessandro Nicita and Marcelo Olareagga, « Estimating Trade Restrictiveness Indices, » The Economic Journal Vol. 119, January 2009, pp. 172-199


Resource Details (Export Citation) GTAP Keywords
Category: 2013 Conference Paper
Status: Published
By/In: Presented at the 16th Annual Conference on Global Economic Analysis, Shanghai, China
Date: 2013
Version:
Created: Disdier, A. (4/10/2013)
Updated: Disdier, A. (8/13/2013)
Visits: 1,252
- Non-Tariff barriers


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