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Reassessing effective protection rates in a trade in tasks perspective: Evolution of trade policy in "Factory Asia"


  • Diakantoni, Antonia
  • Escaith, Hubert


International trade moved from "trade in goods" to "trade in tasks" and effective protection rates (EPRs) are back to the analytical stage. They measure the overall protection that sectoral value-added is receiving from applied tariffs. The paper calculates sectorial EPRs for 10 Asian-Pacific countries between 1995 and 2005 and proposes simple methods aimed at isolating the specific contribution of changes in tariff policies, in production structure or in real exchange rates. International input-output matrices allowed also to compute and compare the average propagation length of a shock linked to a sudden change in tariff duties, identifying sectors most deeply interconnected.

Suggested Citation

  • Diakantoni, Antonia & Escaith, Hubert, 2012. "Reassessing effective protection rates in a trade in tasks perspective: Evolution of trade policy in "Factory Asia"," MPRA Paper 41723, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:41723

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    References listed on IDEAS

    1. Broda, Christian & Limão, Nuno & Weinstein, David E., 2006. "Optimal Tariffs: The Evidence," CEPR Discussion Papers 5540, C.E.P.R. Discussion Papers.
    2. Maria Cipollina & Luca Salvatici, 2008. "Measuring Protection: Mission Impossible?," Journal of Economic Surveys, Wiley Blackwell, vol. 22(3), pages 577-616, July.
    3. Diakantoni, Antonia & Escaith, Hubert, 2009. "Mapping the tariff waters," WTO Staff Working Papers ERSD-2009-13, World Trade Organization (WTO), Economic Research and Statistics Division.
    4. Escaith, Hubert & Gonguet, Fabien, 2011. "International Supply Chains as Real Transmission Channels of Financial Shocks," Journal of Financial Transformation, Capco Institute, vol. 31, pages 83-97.
    5. Erik Dietzenbacher & Isidoro Romero, 2007. "Production Chains in an Interregional Framework: Identification by Means of Average Propagation Lengths," International Regional Science Review, , vol. 30(4), pages 362-383, October.
    6. Robert Stehrer, 2012. "Trade in Value Added and the Valued Added in Trade," wiiw Working Papers 81, The Vienna Institute for International Economic Studies, wiiw.
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    Cited by:

    1. Diakantoni, Antonia & Escaith, Hubert & Roberts, Michael & Verbeet, Thomas, 2017. "Accumulating trade costs and competitiveness in global value chains," WTO Staff Working Papers ERSD-2017-02, World Trade Organization (WTO), Economic Research and Statistics Division.
    2. Diakantoni, Antonia & Escaith, Hubert, 2014. "Trade in tasks, tariff policy and effective protection rates," MPRA Paper 60675, University Library of Munich, Germany.
    3. Hubert Escaith, 2014. "Mapping global value chains and measuring trade in tasks," Chapters,in: Asia and Global Production Networks, chapter 9, pages 287-337 Edward Elgar Publishing.
    4. Escaith, Hubert, 2014. "Exploring the policy dimensions of trade in value-added," MPRA Paper 59891, University Library of Munich, Germany, revised 08 Nov 2014.
    5. Alyson C. Ma & Ari Van Assche, 2014. "Vertical specialization, tariff shirking and trade," Chapters,in: Asia and Global Production Networks, chapter 5, pages 148-178 Edward Elgar Publishing.
    6. Ma, Alyson C. & Van Assche, Ari, 2014. "Vertical Specialization, Tariff Shirking, and Trade," ADB Economics Working Paper Series 390, Asian Development Bank.

    More about this item


    Tariff; Input-Output; Effective Protection; Trade in Value Added; International Outsourcing;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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