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Estimating Trade Restrictiveness Indices

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Author Info
Kee, Hiau Looi
Nicita, Alessandro
Olarreaga, Marcelo

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Abstract

The objective of this paper is to provide indicators of trade restrictiveness that include both measures of tariff and non-tariff barriers for 91 developing and developed countries. For each country, we estimate three trade restrictiveness indices. The first one captures the extent to which trade policies at home affect domestic welfare. This follows the work of Anderson and Neary (1992, 1994 and 1996). The second index captures the impact of trade distortions on each country’s import bundle. This follows the work of Anderson and Neary (2003). The last index focuses on market access and summarizes the trade distortions imposed by the rest of the world on each country’s export bundle. All indices are estimated for the broad aggregates of manufacturing and agriculture products. Results suggest that poor countries (and those with the highest poverty headcount) tend to be more restrictive, but they also face the highest trade barriers on their export bundle. This is partly explained by the fact that agriculture protection is generally larger than manufacturing protection. NTBs contribute more than 70 percent on average to world protection, underlying their importance for any study on trade protection.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 5576.

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Date of creation: Mar 2006
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Handle: RePEc:cpr:ceprdp:5576

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Keywords: trade restrictiveness indices

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Find related papers by JEL classification:
F10 - International Economics - - Trade - - - General
F11 - International Economics - - Trade - - - Neoclassical Models of Trade
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. 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. [Downloadable!] (restricted)
  2. Bernard Hoekman & Francis Ng & Marcelo Olarreaga, 2004. "Agricultural Tariffs or Subsidies: Which Are More Important for Developing Economies?," World Bank Economic Review, Oxford University Press, vol. 18(2), pages 175-204.
  3. Feenstra, R.C., 1995. "Estimating the Effects of Trade Policy," Papers 95-10, California Davis - Institute of Governmental Affairs.
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  4. J Anderson & J.P Neary, 1994. "Measuring the Restrictiveness of Trade Policy," CEP Discussion Papers 0186, Centre for Economic Performance, LSE.
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  5. Trefler, Daniel, 1993. "Trade Liberalization and the Theory of Endogenous Protection: An Econometric Study of U.S. Import Policy," Journal of Political Economy, University of Chicago Press, vol. 101(1), pages 138-60, February. [Downloadable!] (restricted)
  6. James E. Anderson & J. Peter Neary, 2004. "Welfare versus Market Access: The Implications of Tariff Structure for Tariff Reform," Boston College Working Papers in Economics 601, Boston College Department of Economics. [Downloadable!]
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  7. Hiau Looi Kee & Nicita, Alessandro & Olarreaga, Marcelo, 2004. "Import demand elasticities and trade distortions," Policy Research Working Paper Series 3452, The World Bank. [Downloadable!]
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  8. James E. Anderson & J. Peter Neary, 2003. "The Mercantilist Index of Trade Policy," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(2), pages 627-649, 05. [Downloadable!] (restricted)
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  9. Scott Bradford, 2003. "Paying the Price: Final Goods Protection in OECD Countries," The Review of Economics and Statistics, MIT Press, vol. 85(1), pages 24-37, November. [Downloadable!] (restricted)
  10. Anderson, James E, 1998. "Trade Restrictiveness Benchmarks," Economic Journal, Royal Economic Society, vol. 108(449), pages 1111-25, July. [Downloadable!] (restricted)
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  11. Anderson, James E & Neary, J Peter, 1996. "A New Approach to Evaluating Trade Policy," Review of Economic Studies, Blackwell Publishing, vol. 63(1), pages 107-25, January. [Downloadable!] (restricted)
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  12. Anderson, James E & Bannister, Geoffrey J & Neary, J Peter, 1995. "Domestic Distortions and International Trade," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 36(1), pages 139-57, February. [Downloadable!] (restricted)
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  13. Jong-Wha Lee & Phillip Swagel, 1994. "Trade barriers and trade flows across countries and industries," International Finance Discussion Papers 476, Board of Governors of the Federal Reserve System (U.S.).
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  14. Harrigan, James, 1997. "Technology, Factor Supplies, and International Specialization: Estimating the Neoclassical Model," American Economic Review, American Economic Association, vol. 87(4), pages 475-94, September. [Downloadable!] (restricted)
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  15. Alan V. Deardorff & Robert M. Stern, 1997. "Measurement of Non-Tariff Barriers," OECD Economics Department Working Papers 179, OECD Economics Department. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Antimiani, Alessandro & Conforti, Piero & Salvatici, Luca, 2007. "Assessing Market Access: Do Developing Countries Really Get a Preferential Treatment?," Economics & Statistics Discussion Papers esdp07036, University of Molise, Dept. SEGeS. [Downloadable!]
  2. Pushan Dutt & Devashish Mitra & Priya Ranjan, 2007. "International Trade and Unemployment: Theory and Cross-National Evidence," Working Papers 070808, University of California-Irvine, Department of Economics. [Downloadable!]
  3. Nauro F. Campos & Yuko Kinoshita, 2008. "Foreign Direct Investment and Structural Reforms: Evidence from Eastern Europe and Latin America," IMF Working Papers 08/26, International Monetary Fund. [Downloadable!]
    Other versions:
  4. John C. Beghin, 2006. "Nontariff Barriers," Center for Agricultural and Rural Development (CARD) Publications 06-wp438, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
    Other versions:
  5. Galiano, Sebastian & Porto, Guido G., 2006. "Trends in tariff reforms and trends in wage inequality," Policy Research Working Paper Series 3905, The World Bank. [Downloadable!]
  6. Douglas A. Irwin, 2007. "Trade Restrictiveness and Deadweight Losses from U.S. Tariffs, 1859-1961," NBER Working Papers 13450, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  7. Anderson, Kym & Martin, Will & Valenzuela, Ernesto, 2006. "The relative importance of global agricultural subsidies and market access," Policy Research Working Paper Series 3900, The World Bank. [Downloadable!]
    Other versions:
  8. Raimondos-Møller, Pascalis & Woodland, Alan D, 2006. "Steepest Ascent Tariff Reforms," CEPR Discussion Papers 5782, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  9. Alessandro Olper & Valentina Raimondi, 2007. "Patterns and Determinants of International Trade Costs in the Food Industry," LICOS Discussion Papers 18807, LICOS - Centre for Institutions and Economic Performance, K.U.Leuven. [Downloadable!]
  10. Hoekman, Bernard & Vines, David, 2007. "Multilateral Trade Cooperation: What Next?," CEPR Discussion Papers 6458, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  11. Facchini, Giovanni & Olarreaga, Marcelo & Silva, Peri & Willmann, Gerald, 2007. "Substitutability and protectionism: Latin America's trade policy and imports from China and India," Economics working papers 2007,08, Christian-Albrechts-University of Kiel, Department of Economics. [Downloadable!]
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  12. Anderson, Kym, 2006. "Reducing distortions to agricultural incentives : progress, pitfalls, and prospects," Policy Research Working Paper Series 4092, The World Bank. [Downloadable!]
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  13. Dhingra, Swati, 2006. "Reconciling Observed Tariffs and the Median Voter Model," MPRA Paper 892, University Library of Munich, Germany, revised 31 Jul 2007. [Downloadable!]
  14. Ralph Paprzycki, 2007. "The Determinants of and Prospects for Foreign Direct Investment in Japan," Hi-Stat Discussion Paper Series d07-211, Institute of Economic Research, Hitotsubashi University. [Downloadable!]
  15. David Roodman, 2005. "Production-weighted Estimates of Aggregate Protection in Rich Countries toward Developing Countries," Working Papers 66, Center for Global Development. [Downloadable!]
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