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Reassessing effective protection rates in a trade in tasks perspective: Evolution of trade policy in "Factory Asia"

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  • Diakantoni, Antonia
  • Escaith, Hubert

Abstract

International trade moved from "trade in goods" to "trade in tasks" and effective protection rates (EPRs) are back to the analytical stage. They measure the overall protection that sectoral value-added is receiving from applied tariffs. The paper calculates sectorial EPRs for 10 Asian-Pacific countries between 1995 and 2005 and proposes simple methods aimed at isolating the specific contribution of changes in tariff policies, in production structure or in real exchange rates. International input-output matrices allowed also to compute and compare the average propagation length of a shock linked to a sudden change in tariff duties, identifying sectors most deeply interconnected.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 41723.

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Date of creation: 11 Sep 2012
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Handle: RePEc:pra:mprapa:41723

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Related research

Keywords: Tariff; Input-Output; Effective Protection; Trade in Value Added; International Outsourcing;

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  1. Escaith, Hubert & Gonguet, Fabien, 2011. "International Supply Chains as Real Transmission Channels of Financial Shocks," Journal of Financial Transformation, Capco Institute, vol. 31, pages 83-97.
  2. Salvatici, Luca & Cipollina, Maria, 2006. "Measuring Protection: Mission Impossible?," Working Papers 18876, TRADEAG - Agricultural Trade Agreements.
  3. Diakantoni, Antonia & Escaith, Hubert, 2009. "Mapping the Tariff Waters," MPRA Paper 18960, University Library of Munich, Germany.
  4. Robert Stehrer, 2012. "Trade in Value Added and the Valued Added in Trade," wiiw Working Papers 81, The Vienna Institute for International Economic Studies, wiiw.
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