The Combination of Gravity and Welfare Approaches for Evaluating Non-Tariff Measures
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.
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- Anne-Célia Disdier & Lionel Fontagné & Mondher Mimouni, 2007.
"The Impact of Regulations on Agricultural Trade: Evidence from SPS and TBT Agreements,"
2007-04, CEPII research center.
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- Anne-Célia Disdier & Lionel Fontagné & Mondher Mimouni, 2008. "The Impact of Regulations on Agricultural Trade: Evidence from SPS and TBT Agreements," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00274619, HAL.
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