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Measuring Effects of Trade Policy Distortions: How Far Have We Come?


  • Kym Anderson

    (The University of Adelaide in Australia, and a CEPR Research Fellow)


After a brief review of the literature to the early 1970s, this paper assesses the contributions by economists during the past three decades to measuring the distortionary effects of trade policies. It does not pretend to be a comprehensive survey, but draws on selections from the literature that give a sense of the distance the profession has travelled from a trade policy practitioner's viewpoint since Corden's first paper on the subject in 1957. Phenomenal though that progress has been, there is ample room for further improvement in computing the economic (and other) effects of trade-related policies and their reform. The paper concludes with suggestions of where the priorities should be in global modelling of trade policy reform, as the world moves into the next round of multilateral trade negotiations. Copyright © Blackwell Publishing Ltd 2003.

Suggested Citation

  • Kym Anderson, 2003. "Measuring Effects of Trade Policy Distortions: How Far Have We Come?," The World Economy, Wiley Blackwell, vol. 26(4), pages 413-440, April.
  • Handle: RePEc:bla:worlde:v:26:y:2003:i:4:p:413-440

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    References listed on IDEAS

    1. Rod Falvey & Geoff Reed, 1998. "Economic effects of rules of origin," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 134(2), pages 209-229, June.
    2. Hoekman, Bernard, 1993. "Rules of Origin for Goods and Services: Conceptual Issues and Economic Considerations," CEPR Discussion Papers 821, C.E.P.R. Discussion Papers.
    3. Krueger, Anne O., 1997. "Free trade agreements versus customs unions," Journal of Development Economics, Elsevier, vol. 54(1), pages 169-187, October.
    4. Kala Krishna & Anne Krueger, 1995. "Implementing Free Trade Areas: Rules of Origin and Hidden Protection," NBER Working Papers 4983, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Glebe, Thilo W., 2007. "Welfare economics of agricultural trade liberalisation and strategic environmental policy," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 8(2), June.
    2. Toma, Luiza & Mathijs, Erik & Revoredo-Giha, Cesar, 2006. "Linkages between Agriculture, Trade and the Environment in the Context of the European Union Accession," Working Papers 45991, Scottish Agricultural College, Land Economy Research Group.
    3. Anderson, Kym, 2004. "Setting the Trade Policy Agenda: What Roles for Economists?," Working Papers 14574, International Agricultural Trade Research Consortium.
    4. Maria Cipollina & Luca Salvatici, 2008. "Measuring Protection: Mission Impossible?," Journal of Economic Surveys, Wiley Blackwell, vol. 22(3), pages 577-616, July.
    5. Touré, Ali A. & Groenewald, Jan & Seck, Papa Abdoulaye & Diagne, Aliou, 2013. "Analysing policy-induced effects on the performance of irrigated rice," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 8(1), July.
    6. Wilfrid Legg, 2003. "Presidential Address Agricultural Subsidies: Measurement and Use in Policy Evaluation," Journal of Agricultural Economics, Wiley Blackwell, vol. 54(2), pages 175-201.
    7. Kym Anderson, 2016. "Contributions Of The Gatt/Wto To Global Economic Welfare: Empirical Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 30(1), pages 56-92, February.
    8. Touré, Ali A. & Groenewald, Jan & Seck, Papa Abdoulaye & Diagne, Aliou, 2013. "Analysing policy-induced effects on irrigated rice performance," 2013 AAAE Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 160288, African Association of Agricultural Economists (AAAE).
    9. BOUËT Antoine & DHONT-PELTRAULT Estelle, "undated". "An Assessment of the Distributional Impact of Agricultural Trade Policies in the Triad," EcoMod2003 330700022, EcoMod.

    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade


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