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Trade Restrictiveness Indices in Presence of Externalities : An Application to Non-Tariff Measures

Author

Listed:
  • John Christopher Beghin

    (ISU - Iowa State University)

  • Anne-Célia Disdier

    (PSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Stéphan Marette

    (ECO-PUB - Economie Publique - INRA - Institut National de la Recherche Agronomique - AgroParisTech)

Abstract

We extend the trade restrictiveness index approach to the case of market imperfections and domestic regulations addressing them. We focus on standard-like non-tariff measures (NTMs) affecting cost of production and potentially enhancing demand by increasing product quality or reducing negative externalities. We apply the framework to the database of Kee et al. (2009) and derive ad valorem equivalents (AVEs) for NTMs. Half of the product lines affected by NTMs exhibit negative AVEs, indicating a net trade-facilitating effect of NTMs. Accounting for these effects significantly reduces previous measures of countries' trade policy restrictiveness obtained while constraining NTMs to be trade reducing.

Suggested Citation

  • John Christopher Beghin & Anne-Célia Disdier & Stéphan Marette, 2014. "Trade Restrictiveness Indices in Presence of Externalities : An Application to Non-Tariff Measures," PSE - Labex "OSE-Ouvrir la Science Economique" hal-00961727, HAL.
    • Handle: RePEc:hal:pseose:hal-00961727
    Note: View the original document on HAL open archive server: https://pse.hal.science/hal-00961727v2
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Non-tariff measures; Externalities; Ad valorem equivalents; Trade restrictiveness indices;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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