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Is there a dirty little secret? Non-tariff barriers and the gains from trade

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  • Winchester, Niven
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    Abstract

    We estimate tariff equivalents (TEs) of non-tariff barriers (NTBs) using a series of gravity equations. Our analysis focuses on New Zealand, a nation that has a comprehensive free trade agreement (with Australia) that can be used to benchmark other trade negotiations. We estimate reductions in TEs following trade negotiations as differences between New Zealand-Australia TEs and those applying to trade between New Zealand and other nations. Simulating reductions in tariffs and NTBs in a computable general equilibrium (CGE) model indicates that gains from trade liberalisation are much larger when tariffs and NTBs are considered than when only tariffs are reduced. Our results have several implications for trade policy.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Policy Modeling.

    Volume (Year): 31 (2009)
    Issue (Month): 6 (November)
    Pages: 819-834

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    Handle: RePEc:eee:jpolmo:v:31:y:2009:i:6:p:819-834

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    Web page: http://www.elsevier.com/locate/inca/505735

    Related research

    Keywords: Trade liberalisation Non-tariff barriers Computable general equilibrium modelling;

    References

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    1. Francois Joseph F & Wignaraja Ganeshan, 2008. "Economic Implications of Asian Integration," Global Economy Journal, De Gruyter, vol. 8(3), pages 1-48, September.
    2. Joseph Francois & Hans van Meijl & Frank van Tongeren, 2005. "Trade liberalization in the Doha Development Round," Economic Policy, CEPR & CES & MSH, vol. 20(42), pages 349-391, 04.
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    Cited by:
    1. Murat Genç & David Law, 2014. "A Gravity Model of Barriers to Trade in New Zealand," Treasury Working Paper Series 14/05, New Zealand Treasury.
    2. Li, Yuan & Beghin, John C., 2010. "A Meta-Analysis of Estimates of the Impact of Technical Barriers to Trade," Staff General Research Papers 31968, Iowa State University, Department of Economics.
    3. Sebastian Benz & Erdal Yalcin, 2013. "Quantifying the Economic Effects of an EU-Japan Free Trade Agreement," CESifo Working Paper Series 4319, CESifo Group Munich.
    4. Hayakawa, Kazunobu & Kimura, Fukunari, 2014. "How do free trade agreements reduce tariff rates and non-tariff barriers?," IDE Discussion Papers 446, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    5. Santeramo, Fabio Gaetano & Cioffi, Antonio, 2012. "The entry price threshold in EU agriculture: Deterrent or barrier?," Journal of Policy Modeling, Elsevier, vol. 34(5), pages 691-704.
    6. Engelbert, Tanja & Brockmeier, Martina, 2012. "Analyse Des Freihandelsabkommens Zwischen Der Eu Und Indien Unter Berücksichtigung Von Nicht-Tarifären Handelshemmnissen Im Agrar – Und Ernährungsbereich," 52nd Annual Conference, Stuttgart, Germany, September 26-28, 2012 133034, German Association of Agricultural Economists (GEWISOLA).

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