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The Trade Restrictiveness Index: The Potential Contribution To Agricultural Policy Analysis

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Author Info

  • Salvatici, Luca
  • Carter, Colin A.
  • Sumner, Daniel A.

Abstract

In the policy arena, there is a demand for "trade distortion indicators", but many of the traditional indices are difficult to compute and interpret. Recent developments in the literature have led to a new indicator: the Trade Restrictiveness Index (TRI). This paper analyzes some problems related to the TRI's computation and interpretation. We argue that the index is theoretically well grounded and offers potential for measuring the relative importance of agricultural policy distortions. However, the name of "trade restrictiveness" index is seriously misleading, since the TRI does not provide a measure of trade flows restrictions.

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File URL: http://purl.umn.edu/21028
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Bibliographic Info

Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 1997 Annual meeting, July 27-30, Toronto, Canada with number 21028.

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Date of creation: 1997
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Handle: RePEc:ags:aaea97:21028

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Keywords: Agricultural and Food Policy; International Relations/Trade;

References

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  1. Anderson, James E. & Neary, J. Peter, 1993. "Domestic distortions and international trade," Policy Research Working Paper Series 1163, The World Bank.
  2. Anderson, James E., 1992. "Tariff index theory," Policy Research Working Paper Series 1023, The World Bank.
  3. Anderson, James E & Neary, J Peter, 1992. "A New Approach to Evaluating Trade Policy," CEPR Discussion Papers 683, C.E.P.R. Discussion Papers.
  4. Hatta, Tatsuo, 1977. "A Theory of Piecemeal Policy Recommendations," Review of Economic Studies, Wiley Blackwell, vol. 44(1), pages 1-21, February.
  5. 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.
  6. 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.
  7. J Anderson & J.P. Neary, 1994. "Measuring the Restrictiveness of Trade Policy," CEP Discussion Papers dp0186, Centre for Economic Performance, LSE.
  8. De Benedictis, Michele & De Filippis, Fabrizio & Salvatici, Luca, 1991. "Between Scylla and Charibdys: Agricultural Economists' Navigation around Protectionism and Free Trade," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 18(3-4), pages 311-37.
  9. Foster, Edward & Sonnenschein, Hugo, 1970. "Price Distortion and Economic Welfare," Econometrica, Econometric Society, vol. 38(2), pages 281-97, March.
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Citations

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Cited by:
  1. Maria Cipollina & Luca Salvatici, 2008. "Measuring Protection: Mission Impossible?," Journal of Economic Surveys, Wiley Blackwell, vol. 22(3), pages 577-616, 07.
  2. Beghin, John C. & Bureau, Jean-Christophe & Park, Sung Joon, 2002. "The Cost of Food Self-Sufficiency and Agricultural Protection in South Korea," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24879, European Association of Agricultural Economists.
  3. Beghin, John C. & Bureau, Jean-Christophe & Park, Sung Joon, 2003. "Food Security and Agricultural Protection in South Korea," Staff General Research Papers 2006, Iowa State University, Department of Economics.
  4. Luca Salvatici, 1997. "Recent developments in the measurement of the effects of trade policy: index number method and trade restrictiveness index," Working Papers 27, University of Rome La Sapienza, Department of Public Economics.
  5. Luca Salvatici, 2001. "Trade Distortion Indexes and Applied General Equilibrium Models: The Case of the Common Agricoltural Policy," Working Papers 45, University of Rome La Sapienza, Department of Public Economics.

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