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Commercial Policy Uncertainty, the Expected Cost of Protection, and Market Access

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Author Info
Joseph F. Francois () (Erasmus University Rotterdam and CEPR)
Will Martin (World Bank)

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Abstract

Protection unconstrained by rules often varies substantially over time. Rules-based disciplines like OECD industrial tariff bindings negotiated under GATT since 1947 and new Uruguay Round bindings on agricultural and services trade and on developing country industrial tariffs, constrain this variability. We examine the theoretical effects of such constraints on the expected cost of protection and offer a formalization of the concept of "market access," emphasizing both the first and second moments of the distribution of protection. As an illustration, we provide a stylized examination of Uruguay Round agricultural bindings.

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Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 98-059/2.

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Date of creation: 04 Jun 1998
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Handle: RePEc:dgr:uvatin:19980059

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  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. Barari, Mahua & Lapan, Harvey E., 1993. "Stochastic trade policy with asset markets : The role of tariff structure," Journal of International Economics, Elsevier, vol. 35(3-4), pages 317-333, November. [Downloadable!] (restricted)
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  3. Dani Rodrik, 1994. "What Does the Political Economy Literature on Trade Policy (Not) Tell UsThat We Ought To Know?," NBER Working Papers 4870, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  4. Douglas R. Nelson, 1994. "The Political-Economy of U.S. Automobile Protection," NBER Working Papers 4746, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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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. Anderson, Kym, 1978. "On Why Rates Of Assistance Differ Between Australia'S Rural Industries," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 22(02-03). [Downloadable!]
  7. Anderson, Kym, 1980. "The Political Market for Government Assistance to Australian Manufacturing Industries," The Economic Record, The Economic Society of Australia, vol. 56(153), pages 132-44, June.
  8. Mundlak, Yair & Larson, Donald F, 1992. "On the Transmission of World Agricultural Prices," World Bank Economic Review, Oxford University Press, vol. 6(3), pages 399-422, September.
  9. Feinberg, Robert M. & Hirsch, Barry T., 1989. "Industry rent seeking and the filing of unfair trade complaints," International Journal of Industrial Organization, Elsevier, vol. 7(3), pages 325-340. [Downloadable!] (restricted)
  10. repec:bep:glecon:8:2008:3:1 is not listed on IDEAS
  11. Falvey, Rodney E & Lloyd, P J, 1991. "Uncertainty and the Choice of Protective Instrument," Oxford Economic Papers, Oxford University Press, vol. 43(3), pages 463-78, July. [Downloadable!] (restricted)
  12. Pomery, John, 1984. "Uncertainty in trade models," Handbook of International Economics, in: R. W. Jones & P. B. Kenen (ed.), Handbook of International Economics, edition 1, volume 1, chapter 9, pages 419-465 Elsevier. [Downloadable!] (restricted)
  13. Gardner, Bruce L, 1987. "Causes of U.S. Farm Commodity Programs," Journal of Political Economy, University of Chicago Press, vol. 95(2), pages 290-310, April. [Downloadable!] (restricted)
  14. Maskus, Keith E & Konan, Denise Eby, 1997. "Trade Liberalization in Egypt," Review of Development Economics, Blackwell Publishing, vol. 1(3), pages 275-93, October. [Downloadable!] (restricted)
  15. Bardsley, Peter & Cashin, Paul, 1990. "Underwriting Assistance To The Australian Wheat Industry - An Application Of Option Pricing Theory," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 34(03), December. [Downloadable!]
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(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. Mattoo, Aaditya & Olarreaga, Marcelo, 2000. "Should credit be given for autonomous liberalization in multilateral trade negotiations?," Policy Research Working Paper Series 2374, The World Bank. [Downloadable!]
    Other versions:
  2. Bernard Hoekman & Will Martín, 1999. "Some Market Access Issues for Developing Countries in a Millennium Round: Results from Recent World Bank Research," Cuadernos de Economía (Latin American Journal of Economics), Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 36(109), pages 947-978. [Downloadable!]
  3. Anderson, Kym, 2000. "Agriculture, Developing Countries, And The WTO Millennium Round," CEPR Discussion Papers 2437, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  4. Francois, Joseph & Martin, Will, 2002. "Commercial Policy Variability, Bindings and Market Access," CEPR Discussion Papers 3294, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
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