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Measuring the Restrictiveness of Trade Policy

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  • Anderson, James E
  • Neary, J Peter

Abstract

This article provides an introduction to the trade restrictiveness index (TRI), which equals the uniform tariff that is welfare equivalent to a given pattern of trade protection. Unlike standard measures of trade restrictiveness, the TRI has a solid theoretical basis, can incorporate both tariffs and quantitative restrictions, and can be adapted to construct the trade policy equivalent of domestic distortions, the article compares a number of applications and describes procedures for operationalizing the TRI on a personal computer. The authors conclude that the TRI has considerable potential in empirical work. Copyright 1994 by Oxford University Press.

Suggested Citation

  • Anderson, James E & Neary, J Peter, 1994. "Measuring the Restrictiveness of Trade Policy," The World Bank Economic Review, World Bank, vol. 8(2), pages 151-169, May.
    • Handle: RePEc:oup:wbecrv:v:8:y:1994:i:2:p:151-69
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