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A Gravity Model of Barriers to Trade in New Zealand

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Abstract

There are many costs associated with international trade. These costs act as barriers to trade and affect the level of trade. This paper first provides a brief discussion of the state-of- the-art methods used to measure trade costs and to quantify their impact on trade. It then empirically investigates the role of a range of barriers to New Zealand’s trade within the framework of a gravity model of trade. The analysis covers New Zealand’s trade with around 200 trade partners over the years 2001 to 2006, and includes tariffs and a number of non-trade policy factors such as property rights, financial market sophistication, corruption, and a range of measures related to infrastructure quality. The empirical evidence both in the literature and in this study highlights the growing importance of nonpolicy induced barriers to trade.

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  • Murat Genç & David Law, 2014. "A Gravity Model of Barriers to Trade in New Zealand," Treasury Working Paper Series 14/05, New Zealand Treasury.
    • Handle: RePEc:nzt:nztwps:14/05
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    Cited by:

    1. Saarthak Sharma, 2023. "Quantifying Non-Tariff Barriers and Assessing their impacts on India’s key Agricultural exports using a Gravity Model," Working Papers PKWP2316, Post Keynesian Economics Society (PKES).
    2. Alassane D. Yeo & Aimin Deng, 2019. "The trade policy effect in international trade: case of Pakistan," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 8(1), pages 1-17, December.

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    JEL classification:

    • F00 - International Economics - - General - - - General
    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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