Reassessing effective protection rates in a trade in tasks perspective: Evolution of trade policy in "Factory Asia"
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.
|Date of creation:||11 Sep 2012|
|Date of revision:|
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- Broda, Christian & Limão, Nuno & Weinstein, David E., 2006.
"Optimal Tariffs: The Evidence,"
CEPR Discussion Papers
5540, C.E.P.R. Discussion Papers.
- Diakantoni, Antonia & Escaith, Hubert, 2009.
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- Erik Dietzenbacher & Isidoro Romero, 2007. "Production Chains in an Interregional Framework: Identification by Means of Average Propagation Lengths," International Regional Science Review, SAGE Publishing, vol. 30(4), pages 362-383, October.
- Maria Cipollina & Luca Salvatici, 2008.
"Measuring Protection: Mission Impossible?,"
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Wiley Blackwell, vol. 22(3), pages 577-616, 07.
- 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.
- 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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