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Trade Restrictiveness Benchmarks

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  • Anderson, James E

Abstract

Benchmark measures of trade restrictiveness using the Trade Restrictiveness Index (TRI) stand in sharp contrast to standard measures. For a twenty-seven country sample, trade weighted average tariffs underestimate restrictiveness measured by the 'uniform tariff equivalent' (the inverse of the TRI minus one) by an average of 50 percent. For a seven case sample of changes in trade policy, the TRI and changes in average tariffs are uncorrelated. These conclusions appear to be robust with respect to missing data problems and to elasticity of substitution variation, but may be sensitive to the assumptions used to treat nontariff barriers.

Suggested Citation

  • Anderson, James E, 1998. "Trade Restrictiveness Benchmarks," Economic Journal, Royal Economic Society, vol. 108(449), pages 1111-1125, July.
  • Handle: RePEc:ecj:econjl:v:108:y:1998:i:449:p:1111-25
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    1. Anderson, James E & Bannister, Geoffrey J & Neary, J Peter, 1995. "Domestic Distortions and International Trade," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 36(1), pages 139-157, February.
    2. Anderson, James E & Neary, J Peter, 1994. "The Trade Restrictiveness of the Multi-fibre Arrangement," World Bank Economic Review, World Bank Group, vol. 8(2), pages 171-189, May.
    3. Anderson, James E & Neary, J Peter, 1992. "Trade Reform with Quotas, Partial Rent Retention, and Tariffs," Econometrica, Econometric Society, vol. 60(1), pages 57-76, January.
    4. Edwards, Sebastian, 1993. "Openness, Trade Liberalization, and Growth in Developing Countries," Journal of Economic Literature, American Economic Association, vol. 31(3), pages 1358-1393, September.
    5. J. P. Neary (ed.), 1995. "International Trade," Books, Edward Elgar Publishing, volume 0, number 575.
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    Cited by:

    1. Hiau LooiKee & Alessandro Nicita & Marcelo Olarreaga, 2009. "Estimating Trade Restrictiveness Indices," Economic Journal, Royal Economic Society, vol. 119(534), pages 172-199, January.
    2. Krishna, Kala, 2009. "Background Paper on the IMF's Trade Restrictiveness Index," MPRA Paper 21316, University Library of Munich, Germany.
    3. Gouel, Christophe & Mitaritonna, Cristina & Ramos, Maria Priscila, 2011. "Sensitive products in the Doha negotiations: The case of European and Japanese market access," Economic Modelling, Elsevier, vol. 28(6), pages 2395-2403.
    4. Lloyd, P. J. & MacLaren, D., 2002. "Measures of trade openness using CGE analysis," Journal of Policy Modeling, Elsevier, vol. 24(1), pages 67-81, March.
    5. Jessica Madariaga & Anton Bekkerman, 2020. "The Impact of Trade Openness on Relative Equipment Prices: Lessons from Latin America," Economica, London School of Economics and Political Science, vol. 87(348), pages 938-984, October.
    6. Narayanan, Badri G. & Hertel, Thomas W. & Horridge, J. Mark, 2010. "Disaggregated data and trade policy analysis: The value of linking partial and general equilibrium models," Economic Modelling, Elsevier, vol. 27(3), pages 755-766, May.
    7. James E. Anderson & J. Peter Neary, 2003. "The Mercantilist Index of Trade Policy," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(2), pages 627-649, May.
    8. Cletus C. Coughlin, 2010. "Measuring international trade policy: a primer on trade restrictiveness indices," Review, Federal Reserve Bank of St. Louis, vol. 92(Sep), pages 381-394.
    9. Feenstra, Robert C., 1995. "Estimating the effects of trade policy," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 30, pages 1553-1595, Elsevier.
    10. Carolyn L. Evans, 2001. "Home bias in trade: location or foreign-ness?," Staff Reports 128, Federal Reserve Bank of New York.
    11. Anderson, James E., 1998. "The Uruguay Round and welfare in some distorted agricultural economies," Journal of Development Economics, Elsevier, vol. 56(2), pages 393-410, August.
    12. Narayana, Badri G. & Hertel, Thomas W. & Horridge, J. Mark, 2010. "Linking Partial and General Equilibrium Models: A GTAP Application Using TASTE," Technical Papers 283427, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    13. J Fedderke & P Vaze, 2001. "THE NATURE OF SOUTH AFRICA'S TRADE PATTERNS BY ECONOMIC SECTOR, AND THE EXTENT OF TRADE LIBERALIZATION DURING THE COURSE OF THE 1990′s," South African Journal of Economics, Economic Society of South Africa, vol. 69(3), pages 436-478, September.
    14. Anderson, Kym & Kurzweil, Marianne & Martin, William J. & Sandri, Damiano & Valenzuela, Ernesto, 2008. "Methodology for Measuring Distortions to Agricultural Incentives," Agricultural Distortions Working Paper Series 48326, World Bank.
    15. Alan M. Taylor & Natalia Chernyshoff & David Jacks, 2005. "Stuck on Gold:Real Exchange Rate Volatility and the Rise and Fall of the Gold Standard, 1870?1939," Working Papers 237, University of California, Davis, Department of Economics.
    16. Christopher Balding, 2010. "Joining the World Trade Organization: What is the Impact?," Review of International Economics, Wiley Blackwell, vol. 18(1), pages 193-206, February.
    17. Michael A. Clemens & Jeffrey G. Williamson, 2002. "Closed Jaguar, Open Dragon: Comparing Tariffs in Latin America and Asia before World War II," NBER Working Papers 9401, National Bureau of Economic Research, Inc.
    18. Michael A. Clemens & Jeffrey G. Williamson, 2001. "A Tariff-Growth Paradox? Protection's Impact the World Around 1875-1997," NBER Working Papers 8459, National Bureau of Economic Research, Inc.
    19. Chernyshoff, Natalia & Jacks, David S. & Taylor, Alan M., 2009. "Stuck on gold: Real exchange rate volatility and the rise and fall of the gold standard, 1875-1939," Journal of International Economics, Elsevier, vol. 77(2), pages 195-205, April.
    20. Edwards, Lawrence & Lawrence, Robert, 2008. "SACU tariff policies: Where should they go from here?," MPRA Paper 32865, University Library of Munich, Germany.
    21. Sami Dakhlia & John Nye, 2004. "Tax Britannica: Nineteenth Century Tariffs and British National Income," Public Choice, Springer, vol. 121(3), pages 309-333, February.
    22. Bown, Chad P., 2004. "Trade disputes and the implementation of protection under the GATT: an empirical assessment," Journal of International Economics, Elsevier, vol. 62(2), pages 263-294, March.
    23. Jean-Christophe Bureau & Youssef Chahed & Sophie Drogue & Luca Salvatici, 2001. "Protection du secteur agricole dans les pays tiers : un outil pour les négociations du Millenium Round," Working Papers hal-02827128, HAL.
    24. Tena Junguito, Antonio, 2001. "Measuring protection over time : revenue and protective products in the 19th century European tariff growth debate," IFCS - Working Papers in Economic History.WH wh017204, Universidad Carlos III de Madrid. Instituto Figuerola.

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    More about this item

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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