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Trade Restrictiveness Indices in Presence of Externalities: An Application to Non-Tariff Measures

  • Beghin, John C.
  • Disdier, Anne-Celia
  • Marette, Stephan

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 NTMs. About 39% of the product lines affected by NTMs exhibit negative AVEs, indicating a trade-facilitating effect of these measures. Accounting for the trade-facilitating effect of NTMs significantly reduces previous measures of countries' trade policy restrictiveness obtained while constraining these NTMs to be trade reducing.

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File URL: http://purl.umn.edu/142775
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Paper provided by International Agricultural Trade Research Consortium in its series 2012: New Rules of Trade?, December 2012, San Diego, California with number 142775.

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Date of creation: 2012
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Handle: RePEc:ags:iat12m:142775
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  1. Kee, Hiau Looi & Nicita, Alessandro & Olarreaga, Marcelo, 2006. "Estimating trade restrictiveness indices," Policy Research Working Paper Series 3840, The World Bank.
  2. Anne-Célia Disdier & Lionel Fontagné & Mondher Mimouni, 2008. "The Impact of Regulations on Agricultural Trade: Evidence from the SPS and TBT Agreements," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(2), pages 336-350.
  3. Chau, Nancy H. & Fare, Rolf & Grosskopf, Shawna, 2007. "Trade Restrictiveness and Pollution," Working Papers 127016, Cornell University, Department of Applied Economics and Management.
  4. John C. Beghin & Jean-Christophe Bureau & Sung Joon Park, 2001. "Food Security and Agricultural Protection in South Korea," Center for Agricultural and Rural Development (CARD) Publications 01-wp284, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  5. J Anderson & J.P. Neary, 1994. "Measuring the Restrictiveness of Trade Policy," CEP Discussion Papers dp0186, Centre for Economic Performance, LSE.
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  7. M. Ataman Aksoy & John C. Beghin, 2005. "Global Agricultural Trade and Developing Countries," World Bank Publications, The World Bank, number 7464.
  8. Ronald Fischer & Pablo Serra, 1998. "Standards and Protection," Documentos de Trabajo 45, Centro de Economía Aplicada, Universidad de Chile.
  9. Anderson, James E & Neary, J Peter, 1992. "Trade Reform with Quotas, Partial Rent Retention, and Tariffs," Econometrica, Econometric Society, vol. 60(1), pages 57-76, January.
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  13. James E. Anderson & J. Peter Neary, 2005. "Measuring the Restrictiveness of International Trade Policy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262012200, June.
  14. Jouanjean, Marie-Agnès, 2012. "Standards, reputation, and trade: evidence from US horticultural import refusals," World Trade Review, Cambridge University Press, vol. 11(03), pages 438-461, July.
  15. Copeland Brian R., 1994. "International Trade and the Environment: Policy Reform in a Polluted Small Open Economy," Journal of Environmental Economics and Management, Elsevier, vol. 26(1), pages 44-65, January.
  16. Colen, Liesbeth & Maertens, Miet, 2011. "Private Standards and Employment Insecurity: GlobalGAP in the Senegalese Horticulture Export Sector," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114286, European Association of Agricultural Economists.
  17. Disdier, Anne-Célia & Marette, Stéphan, 2010. "The Combination of Gravity and Welfare Approaches for Evaluating Non-Tariff Measures," CEPREMAP Working Papers (Docweb) 1004, CEPREMAP.
  18. Beghin, John C. & Roland-Holst, David & Van der Mensbrugghe, Dominique, 1997. "Trade and Environment Linkages: Piecemeal Reform and Optimal Intervention," Staff General Research Papers 1478, Iowa State University, Department of Economics.
  19. Peter Lloyd & Donald MacLaren, 2007. "A Trade Restrictiveness Index of theLevel of Protection in Australian Manufacturing," Department of Economics - Working Papers Series 1024, The University of Melbourne.
  20. Olivier Cadot & Julien Gourdon, 2012. "Assessing the price-raising effect of non-tariff measures in Africa," Working Papers 2012-16, CEPII research center.
  21. Peter Lloyd & Donald MacLaren, 2008. "An Estimated Trade Restrictiveness Index of the Level of Protection in Australian Manufacturing," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 41(3), pages 250-259, 09.
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