Non-tariff barriers in CGE models: How useful for policy?
With diminishing tariffs, the focus of trade policy makers and analysts is logically turning towards non-tariff barriers (NTBs), but there much remains to be done. It is well-know that tackling NTBs poses many challenges for the analyst because of their diverse and complex nature, and the lack of available evidence. NTBs pose also particular difficulties to computable/applied general equilibrium (CGE) modelling, traditionally more comfortable with policies whose impact can be interpreted into direct effects on prices. This research provides a quantification of the impact of NTBs at the global level. The model we use is significantly larger than in previous studies, and to our knowledge, the first truly global one. The main focus of this research, however, is to discuss and question the various treatments of NTBs in CGE models with a specific application of the global trade analysis project (GTAP) standard model, the workhorse of trade policy CGE analysis. We find that serious estimation and modelling efforts remain to be undertaken in order to make CGE modelling a useful policy tool to analyze NTBs. Casual policy inferences from loose specifications may indeed lead to serious analytical mistakes. We show that while using the same robust estimates of NTB incidence we obtain vastly different results under different model specifications.
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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
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.:
- W. Hertel, Thomas, 2001.
"Dynamic Effects of the “New Age” Free Trade Agreement between Japan and Singapore,"
Journal of Economic Integration,
Center for Economic Integration, Sejong University, vol. 16, pages 446-484.
- Hertel, Thomas W. & Terrie Walmsley & Ken Itakura, 2001. "Dynamic Effects of the "New Age" Free Trade Agreement between Japan and Singapore," GTAP Working Papers 823, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
- Otsuki, Tsunehiro & Wilson, John S. & Sewadeh, Mirvat, 2001. "Saving two in a billion: : quantifying the trade effect of European food safety standards on African exports," Food Policy, Elsevier, vol. 26(5), pages 495-514, October.
- Richard E. Baldwin & Rikard Forslid, 2006.
"Trade Liberalization with Heterogenous Firms,"
NBER Working Papers
12192, National Bureau of Economic Research, Inc.
- Andriamananjara, Soamiely & Dean, Judith M. & Feinberg, Robert & Ferrantino, Michael J. & Ludema, Rodney & Tsigas, Marinos E., 2004. "The Effects of Non-Tariff Measures on Prices, Trade, and Welfare: CGE Implementation of Policy-Based Price Comparisons," Working Papers 15863, United States International Trade Commission, Office of Economics.
- Zhai, Fan, 2008. "Armington Meets Melitz: Introducing Firm Heterogeneity in a Global CGE Model of Trade," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 23, pages 575-604.
- Adams, Philip D., 2005. "Interpretation of results from CGE models such as GTAP," Journal of Policy Modeling, Elsevier, vol. 27(8), pages 941-959, November.
- John C. Beghin & Jean-Christophe Bureau, 2001.
"Quantification of Sanitary, Phytosanitary, and Technical Barriers to Trade for Trade Policy Analysis,"
Center for Agricultural and Rural Development (CARD) Publications
01-wp291, Center for Agricultural and Rural Development (CARD) at Iowa State University.
- John C. Beghin & Jean-Christophe Bureau, 2001. "Quantification of Sanitary, Phytosanitary, and Technical Barriers to Trade for Trade Policy Analysis," Food and Agricultural Policy Research Institute (FAPRI) Publications 01-wp291, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
- Andriamananjara, Soamiely & Ferrantino, Michael J. & Tsigas, Marinos E., 2003. "Alternative Approaches in Estimating the Economic Effects of Non-Tariff Measures: Results from Newly Quantified Measures," Working Papers 15872, United States International Trade Commission, Office of Economics.
- Michael Engman, 2005. "The Economic Impact of Trade Facilitation," OECD Trade Policy Papers 21, OECD Publishing.
- Alan V. Deardorff & Robert M. Stern, 1997. "Measurement of Non-Tariff Barriers," OECD Economics Department Working Papers 179, OECD Publishing.
- Roberts, Donna & Josling, Timothy E. & Orden, David, 1999. "A Framework for Analyzing Technical Trade Barriers in Agricultural Markets," Technical Bulletins 33560, United States Department of Agriculture, Economic Research Service.
- Francois, Joseph, 1998. "Scale Economies and Imperfect Competition in the GTAP Model," GTAP Technical Papers 317, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
- Kee, Hiau Looi & Nicita, Alessandro & Olarreaga, Marcelo, 2006.
"Estimating trade restrictiveness indices,"
Policy Research Working Paper Series
3840, The World Bank.
- John C. Beghin, 2006.
Center for Agricultural and Rural Development (CARD) Publications
06-wp438, Center for Agricultural and Rural Development (CARD) at Iowa State University.
- Beghin, John C., 2006. "Nontariff Barriers," Staff General Research Papers 12703, Iowa State University, Department of Economics.
- John C. Beghin, 2006. "Nontariff Barriers," Food and Agricultural Policy Research Institute (FAPRI) Publications 06-wp438, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
- Joseph Francois & Hans Van Meijl & Frank Van Tongeren, 2005. "Trade liberalization in the Doha Development Round," Economic Policy, CEPR;CES;MSH, vol. 20(42), pages 349-391, 04.
- Harrison, Glenn W. & Jones, Richard & Kimbell, Larry J. & Wigle, Randal, 1993. "How robust is applied general equilibrium analysis?," Journal of Policy Modeling, Elsevier, vol. 15(1), pages 99-115, February.
- Michael Ferrantino, 2006. "Quantifying the Trade and Economic Effects of Non-Tariff Measures," OECD Trade Policy Papers 28, OECD Publishing.
- Mattias Ganslandt & James R. Markusen, 2001. "Standards and Related Regulations in International Trade: A Modeling Approach," NBER Working Papers 8346, National Bureau of Economic Research, Inc.
- Maskus, Keith E. & Wilson, John S. & Tsunehiro Otsuki, 2000. "Quantifying the impact of technical barriers to trade : a framework for analysis," Policy Research Working Paper Series 2512, The World Bank.
When requesting a correction, please mention this item's handle: RePEc:eee:jpolmo:v:30:y:2008:i:3:p:475-490. 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: (Zhang, Lei)
If references are entirely missing, you can add them using this form.