Reassessing effective protection rates in a trade in tasks perspective: Evolution of trade policy in "Factory Asia"
AbstractInternational 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 InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 41723.
Date of creation: 11 Sep 2012
Date of revision:
Tariff; Input-Output; Effective Protection; Trade in Value Added; International Outsourcing;
Find related papers by JEL classification:
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
- C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
- C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
- O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
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- Erik Dietzenbacher & Isidoro Romero, 2007. "Production Chains in an Interregional Framework: Identification by Means of Average Propagation Lengths," International Regional Science Review, , vol. 30(4), pages 362-383, October.
- Maria Cipollina & Luca Salvatici, 2008.
"Measuring Protection: Mission Impossible?,"
Journal of Economic Surveys,
Wiley Blackwell, vol. 22(3), pages 577-616, 07.
- Diakantoni, Antonia & Escaith, Hubert, 2009. "Mapping the Tariff Waters," MPRA Paper 18960, University Library of Munich, Germany.
- 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.
- 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.
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