Advanced Search
MyIDEAS: Login

Micro and Macro Determinants of trade temporary barriers: the Brazilian case over the last two decades

Contents:

Author Info

  • Marcel Vaillant

    ()
    (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República)

  • Marcelo Olarreaga

    ()
    (University of Geneva and CEPR)

Abstract

When the process of trade liberalisation started in Brazil in the late 1980s, a regime of temporary trade protection was put in place. This paper describes the use of TTB by Brazilian’s authority over the last two decades. We found them to be highly concentrated in a few sectors and to heavily rely on antidumping measures, rather than countervailing or safeguards measures. We also develop a simple empirical model to explain the micro and macroeconomic determinants of TTBs in Brazil. After controlling for the political strength of each HS six-digit sector in Brazil, as well as the time invariant characteristic of each trading partner and the level of domestic economic activity using fixed effects, we found that low import prices are not an important determinant of TTB in Brazil even though more than ninety percent of TTB that were put in place over the last two decades were antidumping cases. TTBs are more likely to be observed when imports are large. But, perhaps more interestingly, in sectors with low MFN tariffs and where MFN tariffs are falling, which suggest that MFN tariffs and TTBs are substitutes. Finally, changes in the bilateral exchange rate are important determinants of TTBs, with appreciations of the domestic currency making the imposition of restrictive TTBs more likely.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.fcs.edu.uy/archivos/0711.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Department of Economics - dECON in its series Documentos de Trabajo (working papers) with number 0711.

as in new window
Length: 48 pages
Date of creation: May 2011
Date of revision:
Handle: RePEc:ude:wpaper:0711

Contact details of provider:
Postal: Constituyente 1502, 6to piso, CP 11200, Montevideo
Phone: (598) 2410-6449
Fax: (598) 2410-6450
Email:
Web page: http://www.fcs.edu.uy/subcategoria.php?SubCatId=48&CatId=53
More information through EDIRC

Related research

Keywords: Temporary Trade Barriers; Brazil; Exchange rate;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Nelson, Douglas, 2006. "The political economy of antidumping: A survey," European Journal of Political Economy, Elsevier, vol. 22(3), pages 554-590, September.
  2. J.M. Finger, 1981. "The Industry-Country Incidence of "Less than Fair Value" Cases in US Import Trade," NBER Chapters, in: Export Diversification and the New Protectionism: The Experience of Latin America, pages 260-279 National Bureau of Economic Research, Inc.
  3. Leidy, M.P. & Hoekman, B.M., 1988. "Production Effects Of Price And Cost-Based Anti-Dumping Laws Under Flexible Exchange Rates," Working Papers 224, Research Seminar in International Economics, University of Michigan.
  4. Choi, E. Kwan & Harrigan, James, 2003. "Handbook of International Trade," Staff General Research Papers 11375, Iowa State University, Department of Economics.
  5. Ronald D. Fischer & Thomas J. Prusa, 1999. "Contingent Protection as Better Insurance," NBER Working Papers 6933, National Bureau of Economic Research, Inc.
  6. Liliana Foletti & Marco Fugazza & Alessandro Nicita & Marcelo Olarreaga, 2011. "Smoke in the (Tariff) Water," The World Economy, Wiley Blackwell, vol. 34(2), pages 248-264, 02.
  7. Gene M. Grossman & Elhanan Helpman, 1992. "Protection For Sale," NBER Working Papers 4149, National Bureau of Economic Research, Inc.
  8. Evenett, Simon J., 2009. "Global Trade Alert: Motivation and Launch," World Trade Review, Cambridge University Press, vol. 8(04), pages 607-609, October.
  9. Coughlin, Cletus C & Terza, Joseph V & Khalifah, Noor Aini, 1989. "The Determinants of Escape Clause Petitions," The Review of Economics and Statistics, MIT Press, vol. 71(2), pages 341-47, May.
  10. Takacs, Wendy E, 1981. "Pressures for Protectionism: An Empirical Analysis," Economic Inquiry, Western Economic Association International, vol. 19(4), pages 687-93, October.
  11. kishore gawande & pravin krishna, 2005. "The Political Economy of Trade Policy: Empirical Approaches," International Trade 0503003, EconWPA.
  12. Feinberg, Robert M, 1989. "Exchange Rates and "Unfair Trade."," The Review of Economics and Statistics, MIT Press, vol. 71(4), pages 704-07, November.
  13. Bruce A. Blonigen & Thomas J. Prusa, 2001. "Antidumping," NBER Working Papers 8398, National Bureau of Economic Research, Inc.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Pierluigi Montalbano & Silvia Nenci & Emiliano Magrini, 2014. "Are the EU trade preferences really effective? A generalized propensity score evaluation of the Southern Mediterranea countries’ case in Agriculture and Fishery," Departmental Working Papers of Economics - University 'Roma Tre' 0188, Department of Economics - University Roma Tre.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:ude:wpaper:0711. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Irene Musio) or (Héctor Pastori).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.