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Estimating the Price Effects of Non-Tariff Barriers

Author

Listed:
  • Dean Judith M

    () (U.S. International Trade Commission)

  • Signoret José E

    () (U.S. International Trade Commission)

  • Feinberg Robert M.

    () (American University)

  • Ludema Rodney D.

    () (Georgetown University)

  • Ferrantino Michael J

    () (U.S. International Trade Commission)

Abstract

As multilateral negotiations focus more on reductions and removal of non-tariff barriers (NTBs), the importance of quantifying the impact of these barriers has increased. Recent studies have derived ad valorem equivalents for NTBs for a large number of countries and/or products, but the derivation has been indirect, due to either lack of price data or NTB incidence measures. This paper uses city level retail price data to directly estimate the average impact of core NTBs on prices of 47 consumer products, grouped into four separate sectors, for more than 60 countries in 2001. The analysis uses both government self-reported data and a new database of private sector complaint data to assess NTB incidence. A differentiated products model is used to capture imperfect substitutability between products. With city level price dataincluding both inter- and intra-country price differencesa more precise distinction can be made between the impact of NTBs and the impact of local distribution costs in raising price. The model is estimated using an instrumental variables approach to incorporate the endogeneity of NTBs. Results suggest that core NTBs are still highly restrictive in many countries and for many traded goods. While NTBs appear to be complements to tariffs, in some sectors the presence of a tariff reduces the price impact of the NTB. Results also suggest that in some sectors, the restrictiveness of NTBs is highly correlated with country income.

Suggested Citation

  • Dean Judith M & Signoret José E & Feinberg Robert M. & Ludema Rodney D. & Ferrantino Michael J, 2009. "Estimating the Price Effects of Non-Tariff Barriers," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 9(1), pages 1-41, March.
  • Handle: RePEc:bpj:bejeap:v:9:y:2009:i:1:n:12
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    References listed on IDEAS

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    Cited by:

    1. repec:nbp:nbpbik:v:48:y:2017:i:1:p:45-72 is not listed on IDEAS
    2. Lili Yan ING & Olivier CADOT, 2017. "Remaking Ad valorem equivalents of non-tariff measures in ASEAN," Working Papers DP-2017-09, Economic Research Institute for ASEAN and East Asia (ERIA).
    3. Knobel, Alexander & Baeva, Marina, 2017. "Protective Measures in Integration Agreements and Their Impact on Mutual Trade and Trade with Third Countries: Features of Russia and the Countries of the Eurasian Economic Union," Working Papers 051735, Russian Presidential Academy of National Economy and Public Administration.
    4. Anne-Célia Disdier & Lionel Fontagné & Mondher Mimouni, 2007. "The Impact of Regulations on Agricultural Trade: Evidence from SPS and TBT Agreements," Working Papers 2007-04, CEPII research center.
    5. repec:ksp:journ1:v:4:y:2017:i:3:p:263-274 is not listed on IDEAS
    6. Olivier CADOT & Lili Yan ING, 2017. "Ad-valorem equivalents of NTMs in ASEAN," Working Papers P203, FERDI.
    7. repec:spr:weltar:v:154:y:2018:i:4:d:10.1007_s10290-018-0317-5 is not listed on IDEAS
    8. Imbruno, Michele, 2016. "China and WTO liberalization: Imports, tariffs and non-tariff barriers," China Economic Review, Elsevier, vol. 38(C), pages 222-237.
    9. Liao, Christine Marie & Pasadilla, Gloria O., 2007. "Market Access Limitations of the Philippines in the EU Market," Discussion Papers DP 2007-15, Philippine Institute for Development Studies.
    10. Eyal Ronen, 2017. "Tariffs and non-tariff measures: substitutes or complements. A cross-country analysis," Bank i Kredyt, Narodowy Bank Polski, vol. 48(1), pages 45-72.
    11. Olivier CADOT & Lili Yan ING, 2017. "Ad-valorem equivalents of NTMs in ASEAN," Working Papers P203, FERDI.
    12. repec:bla:reviec:v:25:y:2017:i:5:p:1105-1129 is not listed on IDEAS
    13. Michael J. Ferrantino, 2010. "Methodological approaches to the quantification of non-tariff measures," STUDIES IN TRADE AND INVESTMENT,in: Rising Non-Tariff Protectionism and Crisis Recovery, chapter 9, pages 172-182 United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    14. Zakaria Sorgho & Bruno Larue, 2014. "Geographical indication regulation and intra-trade in the European Union," Agricultural Economics, International Association of Agricultural Economists, vol. 45(S1), pages 1-12, November.
    15. Eyal RONEN, 2017. "Quantifying the trade effects of NTMs: A review of the empirical literature," Journal of Economics and Political Economy, KSP Journals, vol. 4(3), pages 263-274, September.
    16. Marco, Lorena Tudela & Martinez-Gomez, Victor & Álvarez-Coque, José María García, 2014. "Is there a trade-off between NTMs and Tariff protection in Mediterranean countries?," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182838, European Association of Agricultural Economists.
    17. Zhaohui Niu & Chang Liu & Saileshsingh Gunessee & Chris Milner, 2018. "Non-tariff and overall protection: evidence across countries and over time," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 154(4), pages 675-703, November.
    18. Luckstead, Jeff & Devadoss, Stephen, 2015. "Impacts of TTIP on Processed Food Trade under Monopolistic Competition and Firm Heterogeneity," 2016 Allied Social Sciences Association (ASSA) Annual Meeting, January 3-5, 2016, San Francisco, California 212817, Agricultural and Applied Economics Association.
    19. Salamat Ali, 2016. "Export Response to Sanitary and Phytosanitary Measures and Technical Barriers to Trade: Firm-level Evidence from a Developing Country," Discussion Papers 2016-02, University of Nottingham, CREDIT.
    20. Ederington,Josh & Ruta,Michele, 2016. "Non-tariff measures and the world trading system," Policy Research Working Paper Series 7661, The World Bank.

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