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Tariff Liberalization and Trade Integration of Emerging Countries

Author

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  • Anne-Célia Disdier

    (PSE - Paris-Jourdan Sciences Economiques - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics)

  • Lionel Fontagné

    () (CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique, PSE - Paris School of Economics, CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Mondher Mimouni

    (CCI - Centre du Commerce International)

Abstract

This paper investigates how tariff liberalization has affected exporting at the product-destination level in emerging countries. We use a highly disaggregated (six-digit level of the harmonized system—HS—classification) bilateral measure of market access to compare tariffs applied in 1996 and 2006, which includes the timing of the Uruguay Round and episodes of bilateral liberalization. Our econometric estimations consider impacts of tariff cuts on three components of the trade margins: extensive margin of entry (new trade relationships at the product-destination level), extensive margin of exit (disappearance of existing relationships) and intensive margin of trade (deepening existing relationships). Our main estimates indicate that a reduction of bilateral applied tariffs of 1 percentage point increases the extensive margin of entry by 0.1% and the intensive one by 2.09%, while it reduces the extensive margin of exit by 0.25%.

Suggested Citation

  • Anne-Célia Disdier & Lionel Fontagné & Mondher Mimouni, 2015. "Tariff Liberalization and Trade Integration of Emerging Countries," PSE - Labex "OSE-Ouvrir la Science Economique" halshs-01245562, HAL.
  • Handle: RePEc:hal:pseose:halshs-01245562
    DOI: 10.1111/roie.12198
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-01245562
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    References listed on IDEAS

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    1. Angela Cheptea & Lionel Fontagné & Soledad Zignago, 2014. "European export performance," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 150(1), pages 25-58, February.
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    Cited by:

    1. Türkcan, Kemal, 2014. "Investigating the Role of Extensive Margin, Intensive Margin, Price and Quantity Components on Turkey’s Export Growth during 1998-2011," MPRA Paper 53292, University Library of Munich, Germany.
    2. Kazunobu Hayakawa & Jota Ishikawa & Nori Tarui, 2018. "What Goes Around Comes Around: Export-Enhancing Effects of Import- Tariff Reductions," Working Papers 201808, University of Hawaii at Manoa, Department of Economics.
    3. Escaith, Hubert & Tamenu, Bekele, 2013. "Least-Developed Countries' Trade During the "Super-Cycle" and the Great Trade Collapse: Patterns and Stylized Facts," MPRA Paper 51997, University Library of Munich, Germany.
    4. repec:eru:erudhd:hd16-01 is not listed on IDEAS
    5. Hayakawa, Kazunobu & Yoshimi, Taiyo, 2016. "Gravity with multiple tariff schemes," IDE Discussion Papers 614, Institute of Developing Economies, Japan External Trade Organization(JETRO).

    More about this item

    Keywords

    tariff liberalization;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

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