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Measuring Nontariff Trade Policies

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  • Robert E. Baldwin

Abstract

This paper surveys and critiques various methods of measuring nontariff trade measures (NTMs) for the purpose of determining which seem most promising for facilitating the process of reducing the trade-distorting effects of such policies through multilateral negotiations. Four measurement methods are analyzed: price-impact measures, quantity-impact measures, frequency-type measures, and welfare measures. The general conclusion is that, despite a host of difficulties, theoretical and empirical analysis has progressed sufficiently far to enable reasonable measures of nontariff policies to be made that are useful for assessing relative sectoral protection across countries and monitoring changes in protection and subsidization levels over time. Tariff and subsidy equivalents, preferably determined by directly comparing distorted and non-distorted prices, are the most useful forms of measurement, since they focus on the price-distorting effects of NTMs and are also concepts with which public and private officials are already familiar. However, the various other types of measures can be valuable in supplementing the information obtained from tariff and subsidy equivalents.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 2978.

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Date of creation: May 1989
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Publication status: published as Trade Theory and Economic Reform, de Melo, Jaime and Andre Sapir, eds., Oxford: Basil Blockwell, 1991.
Handle: RePEc:nbr:nberwo:2978

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  1. Grossman, Gene M., 1986. "Imports as a cause of injury: The case of the U.S. steel industry," Journal of International Economics, Elsevier, vol. 20(3-4), pages 201-223, May.
  2. Alan V. Deardorff & Robert M. Stern, 1997. "Measurement of Non-Tariff Barriers," OECD Economics Department Working Papers 179, OECD Publishing.
  3. Hamilton, Carl, 1986. "An Assessment of Voluntary Restraints on Hong Kong Exports to Europe and the USA," Economica, London School of Economics and Political Science, vol. 53(211), pages 339-50, August.
  4. Jagdish N. Bhagwati & T. N. Srinivasan, 1975. "Foreign Trade Regimes and Economic Development: India," NBER Books, National Bureau of Economic Research, Inc, number bhag75-1, June.
  5. Bela Balassa, 1965. "Tariff Protection in Industrial Countries: An Evaluation," Journal of Political Economy, University of Chicago Press, vol. 73, pages 573.
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Cited by:
  1. Philip Epstein & Peter Howlett & Max-Stephan Schulze, 2004. "Trade, convergence and globalisation: the dynamics of change in the international income distribution, 1950-1998," Economic History Working Papers 13295, London School of Economics and Political Science, Department of Economic History.
  2. Ingco, Merlinda D., 1995. "Agricultural trade liberalization in the Uruguay Round : one step forward, one step back?," Policy Research Working Paper Series 1500, The World Bank.
  3. Salvatici, Luca & Cipollina, Maria, 2006. "Measuring Protection: Mission Impossible?," Working Papers 18876, TRADEAG - Agricultural Trade Agreements.
  4. Chau, Nancy H. & Fare, Rolf, 2008. "Shadow Pricing Market Access: A Trade Benefit Function Approach," Discussion Papers 6218, University of Bonn, Center for Development Research (ZEF).
  5. Andriamananjara, Shuby & Nash, John, 1997. "Have trade policy reforms led to greater openness in developing countries : evidence from readily available trade data," Policy Research Working Paper Series 1730, The World Bank.
  6. Gavin Cameron & James Proudman & Stephen Redding, 1999. "Openness and its association with productivity growth in UK manufacturing industry," Bank of England working papers 104, Bank of England.
  7. Xiangming Li, 2003. "Trade Liberalization and Real Exchange Rate Movement," IMF Working Papers 03/124, International Monetary Fund.
  8. Carmen Fillat & Eva Pardos, 2007. "Alternative measures for trade restrictiveness. A gravity approach," Documentos de Trabajo dt2007-02, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
  9. Scott Bradford, 2000. "Rents, Votes, and Protection: Explaining the Structure of Trade Barriers Across Industries," Econometric Society World Congress 2000 Contributed Papers 1717, Econometric Society.
  10. Loayza, Norman & Palacios, Luisa, 1997. "Economic reform and progress in Latin America and the Caribbean," Policy Research Working Paper Series 1829, The World Bank.
  11. Pritchett, Lant, 1996. "Measuring outward orientation in LDCs: Can it be done?," Journal of Development Economics, Elsevier, vol. 49(2), pages 307-335, May.
  12. Olivier Cadot & Julien Gourdon, 2012. "Assessing the price-raising effect of non-tariff measures in Africa," Working Papers 2012-16, CEPII research center.
  13. Jean-Louis Combes & Tahsin Saadi-Sedik, 2006. "How Does Trade Openness Influence Budget Deficits in Developing Countries?," IMF Working Papers 06/3, International Monetary Fund.

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