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Trade restrictiveness indices in the presence of externalities: An application to non-tariff measures

In: Nontariff Measures and International Trade

Author

Listed:
  • John Christopher Beghin
  • Anne-Célia Disdier
  • Stéphan Marette

Abstract

We extend the trade restrictiveness index approach to the case of market imperfections and domestic regulations addressing them. We focus on standard-like non-tariff measures (NTMs) affecting cost of production and potentially enhancing demand by reducing negative externalities. We apply the framework to the database of Kee et al. (2009) and derive ad valorem equivalents (AVEs) for technical measures. About 39% of the product lines affected by NTMs exhibit negative AVEs, indicating a net trade-facilitating effect of these measures. Accounting for these effects significantly reduces previous measures of countries’ trade policy restrictiveness obtained while constraining these NTMs to be trade-reducing.

Suggested Citation

  • John Christopher Beghin & Anne-Célia Disdier & Stéphan Marette, 2017. "Trade restrictiveness indices in the presence of externalities: An application to non-tariff measures," World Scientific Book Chapters,in: Nontariff Measures and International Trade, chapter 5, pages 81-104 World Scientific Publishing Co. Pte. Ltd..
  • Handle: RePEc:wsi:wschap:9789813144415_0005
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    Citations

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    Cited by:

    1. Mahdi Ghodsi & Julia Grübler & Oliver Reiter & Robert Stehrer, 2017. "The Evolution of Non-Tariff Measures and their Diverse Effects on Trade," wiiw Research Reports 419, The Vienna Institute for International Economic Studies, wiiw.
    2. Giorgio Barba Navaretti & Giulia Felice & Emanuele Forlani & Paolo Garella, 2018. "Non-tariff measures and competitiveness," Development Working Papers 438, Centro Studi Luca d'Agliano, University of Milano, revised 12 Sep 2018.
    3. John C. Beghin & Bo Xiong, 2016. "Economic Effects of Standard-Like Nontariff Measures: Analytical and Methodological Dimensions," Food and Agricultural Policy Research Institute (FAPRI) Publications 16-wp569, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
    4. John C. Beghin & Jean-Christophe Bureau & Alexandre Gohin, 2017. "The Impact of an EU–US Transatlantic Trade and Investment Partnership Agreement on Biofuel and Feedstock Markets," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(2), pages 321-344, June.
    5. Olivier Cadot & Julien Gourdon, 2016. "Non-tariff measures, preferential trade agreements, and prices: new evidence," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(2), pages 227-249, May.
    6. Maria Cipollina & David Laborde Debucquet & Luca Salvatici, 2017. "The tide that does not raise all boats: an assessment of EU preferential trade policies," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 153(1), pages 199-231, February.
    7. repec:oup:erevae:v:44:y:2017:i:4:p:592-633. is not listed on IDEAS
    8. Mahdi Ghodsi & Julia Grübler & Robert Stehrer, 2016. "Import Demand Elasticities Revisited," wiiw Working Papers 132, The Vienna Institute for International Economic Studies, wiiw.
    9. repec:ags:aieabj:276281 is not listed on IDEAS

    More about this item

    Keywords

    Nontariff Measures; Standards; Barrier; NTM; NTB; Technical Barrier; TBT; International Trade; Phytosanitary; SPS; Maximum Residue Limits; MRL; Food Trade;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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