IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v29y2022i4p298-302.html
   My bibliography  Save this article

On the proper computation of Ad Valorem equivalent of non-tariff measures

Author

Listed:
  • Duc Bao Nguyen
  • Antoine Bouët
  • Fousseini Traoré

Abstract

In all the previous studies evaluating the Ad Valorem Equivalent (AVE) of Non-Tariff Measures (NTMs) based on a gravity equation, Jensen’s inequality is not considered. Yet the issue of estimating the impact of dummy or count variables in semi-log or related equations has been raised since the early eighties. In this article, we illustrate the bias associated with the omission of Jensen’s inequality and show that when it is not considered, the estimation of AVEs can be significantly biased. This omission leads to a significant underestimation of the restrictive impact of NTMs and can even change the sign of the AVE.

Suggested Citation

  • Duc Bao Nguyen & Antoine Bouët & Fousseini Traoré, 2022. "On the proper computation of Ad Valorem equivalent of non-tariff measures," Applied Economics Letters, Taylor & Francis Journals, vol. 29(4), pages 298-302, February.
    • Handle: RePEc:taf:apeclt:v:29:y:2022:i:4:p:298-302
    DOI: 10.1080/13504851.2020.1864273
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13504851.2020.1864273
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13504851.2020.1864273?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bouët, Antoine & Elbehri, Aziz & Nguyen, Duc Bao & Traoré, Fousseini, 2022. "Measuring Agricultural Trade Integration in Southeast Asia," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 37(2), pages 235-266.
    2. Bouët, Antoine & Nimenya, Nicodème, 2023. "Agricultural trade and trade integration in the East African community," IFPRI book chapters, in: Africa agriculture trade monitor 2023, chapter 6, pages 175-204, International Food Policy Research Institute (IFPRI).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:apeclt:v:29:y:2022:i:4:p:298-302. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEL20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.