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Nontariff Barriers and Trade Liberalization

Author

Listed:
  • Simon P. Anderson

    () (Department of Economics, 218 Wilson, University of Virginia, Charlottesville, VA 22904.)

  • Nicolas Schmitt

    () (Department of Economics, 8888 University Drive, Simon Fraser University, Burnaby BC V5A 1S6, Canada.)

Abstract

This article shows that governments have no incentive to introduce nontariff barriers (NTBs) when they are free to set tariffs but they do when tariffs are determined cooperatively. Quotas are preferred to antidumping restrictions so that the model is consistent with a progression from using tariffs only to quotas and then to antidumping constraints (when quotas are eliminated). There is a corresponding narrowing of the range of industries affected by trade restrictions. Simulating the model, the degree of tariff liberalization and of replacement of tariffs by NTBs are shown to depend on industry characteristics in line with stylized facts. Copyright 2003, Oxford University Press.

Suggested Citation

  • Simon P. Anderson & Nicolas Schmitt, 2003. "Nontariff Barriers and Trade Liberalization," Economic Inquiry, Western Economic Association International, vol. 41(1), pages 80-97, January.
  • Handle: RePEc:oup:ecinqu:v:41:y:2003:i:1:p:80-97
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Christian Volpe Martincus & Antoni Estevadeordal, 2009. "Trade Policy and Specialization," IDB Publications (Working Papers) 2489, Inter-American Development Bank.
    2. Michael O. Moore & Maurizio Zanardi, 2011. "Trade Liberalization and Antidumping: Is There a Substitution Effect?," Review of Development Economics, Wiley Blackwell, vol. 15(4), pages 601-619, November.
    3. Imbruno, Michele, 2016. "China and WTO liberalization: Imports, tariffs and non-tariff barriers," China Economic Review, Elsevier, vol. 38(C), pages 222-237.
    4. Melitz, Marc J., 2005. "When and how should infant industries be protected?," Journal of International Economics, Elsevier, vol. 66(1), pages 177-196, May.
    5. Tobias D. Ketterer, 2016. "EU Anti-dumping and Tariff Cuts: Trade Policy Substitution?," The World Economy, Wiley Blackwell, vol. 39(5), pages 576-596, May.
    6. José Daniel Reyes, 2013. "Trade Liberalization and the Adoption of Antidumping Laws in Developing Countries," REVISTA EQUIDAD Y DESARROLLO, UNIVERSIDAD DE LA SALLE, December.
    7. Christian Volpe Martincus & Antoni Estevadeordal, 2009. "Trade Policy and Specialization," IDB Publications (Working Papers) 9289, Inter-American Development Bank.
    8. Vives, Xavier, 2005. "Games with strategic complementarities: New applications to industrial organization," International Journal of Industrial Organization, Elsevier, vol. 23(7-8), pages 625-637, September.
    9. Pascal Ghazalian & Ryan Cardwell, 2010. "Did the Uruguay Round Agreement on Agriculture Affect Trade Flows? An Empirical Investigation for Meat Commodities," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 16(4), pages 331-344, November.
    10. repec:kap:iaecre:v:16:y:2010:i:4:p:331-344 is not listed on IDEAS
    11. Robert M. Feinberg & Kara M. Reynolds, 2007. "Tariff Liberalisation and Increased Administrative Protection: Is There a Quid Pro Quo?," The World Economy, Wiley Blackwell, vol. 30(6), pages 948-961, June.
    12. Julia Gray & Jonathan Slapin, 2012. "How effective are preferential trade agreements? Ask the experts," The Review of International Organizations, Springer, vol. 7(3), pages 309-333, September.

    More about this item

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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