Measuring the Restrictiveness of Trade Policy
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.
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Volume (Year): 8 (1994)
Issue (Month): 2 (May)
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