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The Combination of Gravity and Welfare Approaches for Evaluating Non-Tariff Measures

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  • Disdier, Anne-Célia
  • Marette, Stéphan

Abstract

This article explores the link between gravity and welfare frameworks for measuring the impact of non-tariff measures. First, an analytical approach suggests how to combine a gravity equation with a partial equilibrium model to determine the welfare impact of nontariff measures. Second, an empirical application focuses on the effects of a standard capping antibiotic residues in crustaceans in the United States, the European Union, Canada and Japan. While the econometric estimation of the gravity equation reports a negative impact on imports, welfare evaluations show that, in most cases, a stricter standard leads to an increase in both domestic and international welfare.

Suggested Citation

  • Disdier, Anne-Célia & Marette, Stéphan, 2010. "The Combination of Gravity and Welfare Approaches for Evaluating Non-Tariff Measures," CEPREMAP Working Papers (Docweb) 1004, CEPREMAP.
    • Handle: RePEc:cpm:docweb:1004
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    More about this item

    Keywords

    Gravity Equation; Non-Tariff Measures; Seafood; Welfare;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture

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