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Non-Tariff Barriers - the Achilles' Heel of Trade Policy Analyses

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Author Info
Taran Fæhn (Statistics Norway)
Abstract

This study demonstrates the quantitative, as well as the qualitative, role of non-tariff barriers (NTBs). The Norwegian nominal tariff and non-tariff barriers are identified and thoroughly quantified. Computations of effective rates of protection (ERP) show that NTBs entirely dominate tariffs as direct contributors to primary factor income, which again is an important determinant in allocation of resources among industries. The indirect input-output effects play a decisive role. This points to the importance of estimating the nominal trade barrier inputs properly; when a biased estimate is spread throughout the input-output system, not even the direction of the miscalculation will be easy to predict. In order to demonstrate the qualitative role, NTBs are categorised into price-oriented and quantity-oriented, respectively. ERP computations illustrate that the conclusions of policy analyses rely critically on the qualitative interdependency between quantity-oriented NTBs and other measures.

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Paper provided by Research Department of Statistics Norway in its series Discussion Papers with number 195.

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Date of creation: Jun 1997
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Handle: RePEc:ssb:dispap:195

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Related research
Keywords: Non-tariff barriers Trade policy ERP computations.

Find related papers by JEL classification:
C80 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - General
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
L70 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - General

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  1. Vernon Roningen & Alexander Yeats, 1976. "Nontariff distortions of international trade: Some preliminary empirical evidence," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 112(4), pages 613-625, December. [Downloadable!] (restricted)
  2. D. Greenaway & R. Hine, 1993. "Trade policy and protection in the European Community," Open Economies Review, Springer, vol. 4(4), pages 433-456, December. [Downloadable!] (restricted)
  3. Deardoff, A.V. & Brown, D.K. & Stern, R.M. & Fox, A.K., 1995. "Computational Analysis of Goods and Services Liberalization in the Uruguay Round," Working Papers 379, Research Seminar in International Economics, University of Michigan.
  4. Roland-Holst, David W & Polo, Clemente & Sancho, Ferran, 1995. "Trade Liberalization and Industrial Structure in Spain: An Applied General Equilibrium Analysis," Empirical Economics, Springer, vol. 20(1), pages 1-18.
  5. Johnson, Harry G, 1969. "The Theory of Effective Protection and Preferences," Economica, London School of Economics and Political Science, vol. 36(142), pages 119-38, May. [Downloadable!] (restricted)
  6. Gabrielle Antille & Marc Bacchetta & Fabrizio Carlevaro & Tobias Müller & Nicolas Schmitt, 1993. "Switzerland and the European Economic Area: A General Equilibrium Assessment of Some Measures of Integration," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 129(IV), pages 643-672, December. [Downloadable!]
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