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Methods to Aggregate Import Tariffs and their Impacts on Modeling Results

Author

Listed:
  • Pelikan, Janine

    (Johann Heinrich von Thünen Institute (vTI))

  • Brockmeier, Martina

    (Johann Heinrich von Thünen Institute (vTI))

Abstract

When impacts of WTO market access proposals are analyzed with economic trade models, it is necessary to aggregate tariff data from the detailed tariff line level to the model level. In this article import tariffs and implemented import tariff cuts are aggregated from the HS6-digit tariff line level with the simple and trade weighted average, the Trade Restrictiveness Index (TRI) and the Mercantilist Trade Restrictiveness Index (MTRI) by considering bound and applied tariff rates. The resulting tariffs are substituted for the originally applied import tariffs of the GTAP data base. Multilateral trade liberalization scenarios are then implemented and the welfare effects are compared.

Suggested Citation

  • Pelikan, Janine & Brockmeier, Martina, 2008. "Methods to Aggregate Import Tariffs and their Impacts on Modeling Results," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 23, pages 685-708.
    • Handle: RePEc:ris:integr:0450
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    Citations

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    Cited by:

    1. Ko, Jong-Hwan & Britz, Wolfgang, 2013. "Does Regional and Sectoral Aggregation Matter? Sensitivity Analysis in the Context of an EU-South Korea FTA," Conference papers 332358, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Pelikan, Janine & Banse, Martin, 2014. "Auswirkungen regionaler Freihandelsabkommen auf deutsche und europäische Agrarmärkte," Thünen Working Paper 169290, Johann Heinrich von Thünen-Institut (vTI), Federal Research Institute for Rural Areas, Forestry and Fisheries.
    3. Britz, Wolfgang & van der Mensbrugghe, Dominique, 2016. "Reducing unwanted consequences of aggregation in large-scale economic models - A systematic empirical evaluation with the GTAP model," Economic Modelling, Elsevier, vol. 59(C), pages 463-472.
    4. Listorti, Giulia & Tonini, Axel & Kempen, Markus & Adenauer, Marcel, 2013. "How to Implement WTO Scenarios in Simulation Models: Linking the TRIMAG Tariff Aggregation Tool to Capri," 135th Seminar, August 28-30, 2013, Belgrade, Serbia 160388, European Association of Agricultural Economists.
    5. Urban, Kirsten & Brockmeier, Martina & Jensen, Hans Grinsted, 2015. "Evaluating the Effect of Domestic Support on International Trade: A Mercantilist Trade Restrictiveness Approach," Conference papers 332615, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    6. Himics, Mihaly & Listorti, Giulia & Tonini, Axel, 2020. "Simulated economic impacts in applied trade modelling: A comparison of tariff aggregation approaches," Economic Modelling, Elsevier, vol. 87(C), pages 344-357.
    7. Janine Pelikan & Martina Brockmeier, 2008. "Tariff Aggregation and Market Access: An Empirical Assessment for Canada and the EU," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(4), pages 413-427, December.
    8. Pelikan, J. & Brockmeier, M., 2009. "Wohlfahrtswirkungen einer Handelsliberalisierung: Welchen Einfluss hat die Zollaggregation auf die Modellergebnisse?," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 44, March.
    9. Himics, Mihály & Britz, Wolfgang, 2016. "Flexible and welfare-consistent tariff aggregation over exporter regions," Economic Modelling, Elsevier, vol. 53(C), pages 375-387.
    10. Brockmeier, Martina & Bektasoglu, Beyhan, 2014. "Model structure or data aggregation level: Which leads to greater bias of results?," Economic Modelling, Elsevier, vol. 38(C), pages 238-245.
    11. He, Xi & Yang, Anton & Balistreri, Edward J. & Zhang, Wendong, 2021. "Agricultural Trade Impacts of RCEP: an Integrated Partial Equilibrium and General Equilibrium Assessment," Conference papers 333312, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

    More about this item

    Keywords

    import tariff aggregation; tariff cutting scenarios; bound and applied tariffs; WTO negotiations; CGE modeling; agricultural trade policy;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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