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Trade Restrictiveness in the Presence of 'New' Goods

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  • Christos Pantzios

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    Abstract

    The Trade Restrictiveness Index (TRI) by Anderson and Neary (1994) is an index number aggregating trade distortions in the context of a small open economy. A liberalization process which allows trade in goods not traded in previous periods, implies different sets of goods in the two successive periods over which the TRI is defined; this may introduce a bias, inherent in index numbers. This paper attempts a refinement of the standard TRI to allow for the presence of newly traded goods in the definition of the index. In addition, an implementable expression of the refined TRI is provided. Copyright Kluwer Academic Publishers 2000

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    File URL: http://hdl.handle.net/10.1023/A:1008357230630
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    Bibliographic Info

    Article provided by Springer in its journal Open Economies Review.

    Volume (Year): 11 (2000)
    Issue (Month): 1 (January)
    Pages: 93-101

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    Handle: RePEc:kap:openec:v:11:y:2000:i:1:p:93-101

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    Web page: http://www.springerlink.com/link.asp?id=100323

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    Keywords: trade restrictiveness index; new goods; international trade;

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    1. James E. Anderson, 1991. "The Coefficient of Trade Utilization: The Cheese Case," NBER Chapters, in: Empirical Studies of Commercial Policy, pages 221-244 National Bureau of Economic Research, Inc.
    2. Cornes,Richard, 1992. "Duality and Modern Economics," Cambridge Books, Cambridge University Press, number 9780521336017, April.
    3. Neary, J.P & Roberts, K.W.S, 1978. "The Theory of Household Behaviour under Rationing," The Warwick Economics Research Paper Series (TWERPS) 132, University of Warwick, Department of Economics.
    4. Feenstra, Robert C, 1994. "New Product Varieties and the Measurement of International Prices," American Economic Review, American Economic Association, vol. 84(1), pages 157-77, March.
    5. Anderson, James E., 1992. "Tariff index theory," Policy Research Working Paper Series 1023, The World Bank.
    6. J Anderson & J.P. Neary, 1993. "A New Approach to Evaluating Trade Policy," CEP Discussion Papers dp0173, Centre for Economic Performance, LSE.
    7. Lloyd, Peter J & Schweinberger, Albert G, 1990. " Distortions, True Trade Price and Quantity Indices and Welfare," Scandinavian Journal of Economics, Wiley Blackwell, vol. 92(4), pages 541-57.
    8. Neary, J Peter, 1995. "Trade Liberalisation and Shadow Prices in the Presence of Tariffs and Quotas," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 36(3), pages 531-54, August.
    9. Feenstra, R. & Markusen, J.R., 1991. "Accounting for Growth with New Inputs," Papers 380, California Davis - Institute of Governmental Affairs.
    10. J Anderson & J.P. Neary, 1994. "Measuring the Restrictiveness of Trade Policy," CEP Discussion Papers dp0186, Centre for Economic Performance, LSE.
    11. Falvey, Rodney E., 1981. "Commercial policy and intra-industry trade," Journal of International Economics, Elsevier, vol. 11(4), pages 495-511, November.
    12. Lloyd, P. J. & Schweinberger, A. G., 1988. "Trade expenditure functions and the gains from trade," Journal of International Economics, Elsevier, vol. 24(3-4), pages 275-297, May.
    13. Anderson, James E & Neary, J Peter, 1993. "Domestic Distortions and International Trade," CEPR Discussion Papers 786, C.E.P.R. Discussion Papers.
    14. Anderson, James E & Neary, J Peter, 1992. "Trade Reform with Quotas, Partial Rent Retention, and Tariffs," Econometrica, Econometric Society, vol. 60(1), pages 57-76, January.
    15. W. Erwin Diewert, 1980. "Aggregation Problems in the Measurement of Capital," NBER Chapters, in: The Measurement of Capital, pages 433-538 National Bureau of Economic Research, Inc.
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