Trade Distortion Indexes And Multiregional Age Models: The Case Of The Common Agricultural Policy

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Trade Distortion Indexes And Multiregional Age Models: The Case Of The Common Agricultural Policy

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Luca Salvatici

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Luca Salvatici

Abstract

In this paper, we build on the insights of the Trade Restrictiveness Index (TRI) approach by computing uniform tariff equivalents for the European Union primary sector using the Global Trade Analysis Project model and its associated data base. The main contribution of the paper is to extend and adapt the definition of the TRI, in order to make it consistent with the structure of a multi-regional Applied General Equilibrium model. In this perspective, we define a “modified TRI” based on the direct welfare evaluation (rather than on the Balance of trade function) and extend its definition in order to take into account the terms of trade impact. Finally, an empirical application of the index is provided with reference to two policy scenarios: the liberalization of the Common Agricultural Policy and the implementation of the “Agenda 2000” reform.

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Paper provided by Sapienza University of Rome, Department of Public Economics in its series Working Papers with number 45.

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Length: 32 pages
Date of creation: Nov 2001
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Handle: RePEc:sap:wpaper:45

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Find related papers by JEL classification:
C68 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Computable General Equilibrium Models
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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Bureau, Jean-Christophe & Salvatici, Luca, 2002. "WTO Negotiations on Market Access in Agriculture: A Comparison of Alternative Tariff Cut Scenarios for the EU and the US," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24883, European Association of Agricultural Economists. [Downloadable!]
Salvatici, Luca & Cipollina, Maria, 2006. "Measuring Protection: Mission Impossible?," Working Papers 18876, TRADEAG - Agricultural Trade Agreements. [Downloadable!]
Other versions:
- Maria Cipollina & Luca Salvatici, 2008. "Measuring Protection: Mission Impossible?," Journal of Economic Surveys, Blackwell Publishing, vol. 22(3), pages 577-616, 07. [Downloadable!] (restricted)
Jean-Christophe Bureau & Luca Salvatici, 2004. "WTO Negotiations on Market Access in Agriculture: a Comparison of Alternative Tariff Cut Proposals for the EU and the US," The B.E. Journal of Economic Analysis & Policy, Berkeley Electronic Press, vol. 0(1). [Downloadable!]

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