Is there a dirty little secret? Non-tariff barriers and the gains from trade
We estimate tariff equivalents (TEs) of non-tariff barriers (NTBs) using a series of gravity equations. Our analysis focuses on New Zealand, a nation that has a comprehensive free trade agreement (with Australia) that can be used to benchmark other trade negotiations. We estimate reductions in TEs following trade negotiations as differences between New Zealand-Australia TEs and those applying to trade between New Zealand and other nations. Simulating reductions in tariffs and NTBs in a computable general equilibrium (CGE) model indicates that gains from trade liberalisation are much larger when tariffs and NTBs are considered than when only tariffs are reduced. Our results have several implications for trade policy.
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.:
- de Bruijn, Roland & Kox, Henk & Lejour, Arjan, 2008. "Economic benefits of an Integrated European Market for Services," Journal of Policy Modeling, Elsevier, vol. 30(2), pages 301-319.
- 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.
- Yue, Chengyan & Beghin, John C., 2007.
"The Tariff Equivalent and Forgone Trade Effects of Prohibitive Technical Barriers to Trade,"
Staff General Research Papers Archive
12852, Iowa State University, Department of Economics.
- Yue, Chengyan & Beghin, John C., 2007. "The Tariff Equivalent and Forgone Trade Effects of Prohibitive Technical Barriers to Trade," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN 10000, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- McCallum, John, 1995. "National Borders Matter: Canada-U.S. Regional Trade Patterns," American Economic Review, American Economic Association, vol. 85(3), pages 615-623, June.
- Shang-Jin Wei, 1996. "Intra-National versus International Trade: How Stubborn are Nations in Global Integration?," NBER Working Papers 5531, National Bureau of Economic Research, Inc.
- Joao Santos Silva & Silvana Tenreyro, 2005.
"The log of gravity,"
LSE Research Online Documents on Economics
3744, London School of Economics and Political Science, LSE Library.
- Arjan M. Lejour & Ruud A. de Mooij & Richard Nahuis, 2001.
"EU Enlargement: Economic Implications for Countries and Industries,"
CESifo Working Paper Series
585, CESifo Group Munich.
- Arjan Lejour & Ruud de Mooij & Richard Nahuis, 2001. "EU enlargement: economic implications for countries and industries," CPB Document 11, CPB Netherlands Bureau for Economic Policy Analysis.
- Philippidis, G. & Carrington, A., 2005. "European Enlargement and Single Market Accession: A Mistreated Issue," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 20, pages 543-566.
- G. Philippidis & A.I. Sanjuán, 2007. "An Examination of Morocco's Trade Options with the EU," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 16(2), pages 259-300, March.
- Baldwin, Robert E., 2009. "Trade negotiations within the GATT/WTO framework: A survey of successes and failures," Journal of Policy Modeling, Elsevier, vol. 31(4), pages 515-525, July.
- James E. Anderson & Eric van Wincoop, 2001.
"Gravity with Gravitas: A Solution to the Border Puzzle,"
NBER Working Papers
8079, National Bureau of Economic Research, Inc.
- James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
- James E. Anderson & Eric van Wincoop, 2000. "Gravity with Gravitas: A Solution to the Border Puzzle," Boston College Working Papers in Economics 485, Boston College Department of Economics.
- Robert Scollay & John P. Gilbert, 2001.
"New Regional Trading Arrangements in the Asia Pacific?,"
Peterson Institute Press: Policy Analyses in International Economics,
Peterson Institute for International Economics, number pa63, July.
- Robert Scollay & John P. Gilbert, 2001. "New Regional Trading Arrangements in the Asia Pacific?," Peterson Institute Press: All Books, Peterson Institute for International Economics, number pa63, January.
- Niven Winchester, 2006. "Liberating middle earth: How will changes in the global trading system affect New Zealand?," New Zealand Economic Papers, Taylor & Francis Journals, vol. 40(1), pages 45-79.
- 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.
- Joseph Francis Francois & Ganeshan Wignaraja, 2008.
"Economic Implications of Deeper Asian Integration,"
Economics working papers
2008-13, Department of Economics, Johannes Kepler University Linz, Austria.
- Brown, Drusilla K., 1987. "Tariffs, the terms of trade, and national product differentiation," Journal of Policy Modeling, Elsevier, vol. 9(3), pages 503-526.
- Kitwiwattanachai, Anyarath & Nelson, Doug & Reed, Geoffrey, 2010. "Quantitative impacts of alternative East Asia Free Trade Areas: A Computable General Equilibrium (CGE) assessment," Journal of Policy Modeling, Elsevier, vol. 32(2), pages 286-301, March.
- Francois Joseph F & Wignaraja Ganeshan, 2008. "Economic Implications of Asian Integration," Global Economy Journal, De Gruyter, vol. 8(3), pages 1-48, September.
- Michael Ferrantino, 2006. "Quantifying the Trade and Economic Effects of Non-Tariff Measures," OECD Trade Policy Papers 28, OECD Publishing.
When requesting a correction, please mention this item's handle: RePEc:eee:jpolmo:v:31:y:2009:i:6:p:819-834. 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: (Dana Niculescu)
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.