IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/60675.html
   My bibliography  Save this paper

Trade in tasks, tariff policy and effective protection rates

Author

Listed:
  • Diakantoni, Antonia
  • Escaith, Hubert

Abstract

With the rise of global value chains, effective protection rates (EPRs) provide important insights on the impact of nominal tariffs on the competitiveness of industries. Building on the results of the OECD-WTO Trade in Value-Added TiVA database, the paper analyses the evolution of EPRs in about 50 developed and developing countries from 1995 to 2008. The paper reviews also the role of preferential agreements on effective protection as well as the impact of tariffs on the production costs of services. A final chapter is dedicated to the underlying patterns that may explain those EPR profiles.

Suggested Citation

  • Diakantoni, Antonia & Escaith, Hubert, 2014. "Trade in tasks, tariff policy and effective protection rates," MPRA Paper 60675, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:60675
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/60675/8/MPRA_paper_60675.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Wilhelm Kohler, 2014. "International Outsourcing and Factor Prices with Multistage Production," World Scientific Book Chapters, in: European Economic Integration, WTO Membership, Immigration and Offshoring, chapter 8, pages 265-290, World Scientific Publishing Co. Pte. Ltd..
    2. Wilhelm Kohler, 2004. "International outsourcing and factor prices with multistage production," Economic Journal, Royal Economic Society, vol. 114(494), pages 166-185, March.
    3. Bela Balassa & Daniel M. Schydlowsky, 1968. "Effective Tariffs, Domestic Cost of Foreign Exchange, and the Equilibrium Exchange Rate," Journal of Political Economy, University of Chicago Press, vol. 76(3), pages 348-348.
    4. Marc Lavoie, 2014. "Post-Keynesian Economics: New Foundations," Post-Print hal-01343652, HAL.
    5. Roy Ruffin, 2008. "A rehabilitation of effective protection," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 17(3), pages 333-342.
    6. Hubert Escaith, 2014. "Mapping global value chains and measuring trade in tasks," Chapters, in: Benno Ferrarini & David Hummels (ed.), Asia and Global Production Networks, chapter 9, pages 287-337, Edward Elgar Publishing.
    7. Ferrantino, Michael J., 2012. "Using supply chain analysis to examine the costs of non-tariff measures (NTMs) and the benefits of trade facilitation," WTO Staff Working Papers ERSD-2012-02, World Trade Organization (WTO), Economic Research and Statistics Division.
    8. Diakantoni, Antonia & Escaith, Hubert, 2012. "Reassessing effective protection rates in a trade in tasks perspective: Evolution of trade policy in factory Asia," WTO Staff Working Papers ERSD-2012-13, World Trade Organization (WTO), Economic Research and Statistics Division.
    9. Escaith, Hubert & Gaudin, Hadrien, 2014. "Clustering value-added trade: Structural and policy dimensions," WTO Staff Working Papers ERSD-2014-08, World Trade Organization (WTO), Economic Research and Statistics Division.
    10. Kei-Mu Yi, 2003. "Can Vertical Specialization Explain the Growth of World Trade?," Journal of Political Economy, University of Chicago Press, vol. 111(1), pages 52-102, February.
    11. Rauch, James E., 1999. "Networks versus markets in international trade," Journal of International Economics, Elsevier, vol. 48(1), pages 7-35, June.
    12. Inomata, Satoshi, 2008. "A New Measurement for International Fragmentation of the Production Process: An International Input-Output Approach," IDE Discussion Papers 175, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Aggarwal, Sakshi, 2023. "The empirical measurement and determinants of intra-industry trade for a developing country," MPRA Paper 117112, University Library of Munich, Germany.
    2. Escaith, Hubert, 2016. "Revisiting growth accounting from a trade in value-added perspective," WTO Staff Working Papers ERSD-2016-01, World Trade Organization (WTO), Economic Research and Statistics Division.
    3. 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.
    4. Escaith, Hubert & Gaudin, Hadrien, 2014. "Clustering Value-Added Trade: Structural and Policy Dimensions," MPRA Paper 57276, University Library of Munich, Germany.
    5. Sakshi Aggarwal & Debashis Chakraborty, 2022. "Which Factors Influence India’s Intra-Industry Trade? Empirical Findings for Select Sectors," Global Business Review, International Management Institute, vol. 23(3), pages 729-755, June.
    6. Escaith, Hubert, 2014. "Exploring the policy dimensions of trade in value-added," MPRA Paper 59891, University Library of Munich, Germany, revised 08 Nov 2014.
    7. Antimiani, Alessandro & Fusacchia, Ilaria & Salvatici, Luca, 2016. "Value Added Trade Restrictiveness Indexes. Measuring Protection with Global Value Chains," Conference papers 332745, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    8. Bao Ho Dinh & Hai Nguyen Phuc & Trinh Bui & Hau Nguyen, 2020. "Declining Protection for Vietnamese Agriculture under Trade Liberalization: Evidence from an Input–Output Analysis," Economies, MDPI, vol. 8(2), pages 1-11, June.
    9. Eva Wichmann, 2017. "Crucial Materials? How Export Restrictions Upstream Boost Manufacturing Exports Downstream," FIW Working Paper series 181, FIW.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    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. Escaith, Hubert, 2014. "Exploring the policy dimensions of trade in value-added," MPRA Paper 59891, University Library of Munich, Germany, revised 08 Nov 2014.
    3. Pol Antràs & Davin Chor, 2013. "Organizing the Global Value Chain," Econometrica, Econometric Society, vol. 81(6), pages 2127-2204, November.
    4. Laura Alfaro & Pol Antràs & Davin Chor & Paola Conconi, 2019. "Internalizing Global Value Chains: A Firm-Level Analysis," Journal of Political Economy, University of Chicago Press, vol. 127(2), pages 508-559.
    5. Colantone, Italo & Crinò, Rosario, 2014. "New imported inputs, new domestic products," Journal of International Economics, Elsevier, vol. 92(1), pages 147-165.
    6. Nico Voigtlaender, 2009. "Many Sectors Meet More Skills: Intersectoral Linkages and the Skill Bias of Technology," 2009 Meeting Papers 1136, Society for Economic Dynamics.
    7. Raphael A. Auer, 2013. "Product Heterogeneity, Cross-Country Taste Differences, and the Consumption Home Bias," Working Papers 13.01, Swiss National Bank, Study Center Gerzensee.
    8. Krolikowski, Pawel M. & McCallum, Andrew H., 2021. "Goods-market frictions and international trade," Journal of International Economics, Elsevier, vol. 129(C).
    9. Pol Antràs, 2020. "De-Globalisation? Global Value Chains in the Post-COVID-19 Age," NBER Working Papers 28115, National Bureau of Economic Research, Inc.
    10. Hiau Looi Kee & Alessandro Nicita & Marcelo Olarreaga, 2008. "Import Demand Elasticities and Trade Distortions," The Review of Economics and Statistics, MIT Press, vol. 90(4), pages 666-682, November.
    11. Raphael Auer, 2009. "Product Heterogeneity, Within-Industry Trade Patterns, and the Home Bias of Consumption?," Working Papers 09.05, Swiss National Bank, Study Center Gerzensee.
    12. Pol Antràs & Alonso de Gortari, 2020. "On the Geography of Global Value Chains," Econometrica, Econometric Society, vol. 88(4), pages 1553-1598, July.
    13. Gaurav Khanna & Nicolas Morales & Nitya Pandalai-Nayar, 2022. "Supply Chain Resilience: Evidence from Indian Firms," NBER Working Papers 30689, National Bureau of Economic Research, Inc.
    14. Anne-Célia Disdier & Lionel Fontagné & Mondher Mimouni, 2015. "Tariff Liberalization and Trade Integration of Emerging Countries," Review of International Economics, Wiley Blackwell, vol. 23(5), pages 946-971, November.
    15. Alexander Hijzen & Tomohiko Inui & Yasuyuki Todo, 2010. "Does Offshoring Pay? Firm‐Level Evidence From Japan," Economic Inquiry, Western Economic Association International, vol. 48(4), pages 880-895, October.
    16. Egger, Hartmut & Egger, Peter, 2007. "Outsourcing and trade in a spatial world," Journal of Urban Economics, Elsevier, vol. 62(3), pages 441-470, November.
    17. Antrà s, Pol & Chor, Davin, 2017. "On the Measurement of Upstreamness and Downstreamness in Global Value Chains," CEPR Discussion Papers 12549, C.E.P.R. Discussion Papers.
    18. Lukas Mohler & Michael Seitz, 2012. "The gains from variety in the European Union," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 148(3), pages 475-500, September.
    19. João Amador & Sónia Cabral, 2014. "Global Value Chains: Surveying Drivers, Measures and Impacts," Working Papers w201403, Banco de Portugal, Economics and Research Department.
    20. Sergi Basco & Martí Mestieri, 2019. "The world income distribution: the effects of international unbundling of production," Journal of Economic Growth, Springer, vol. 24(2), pages 189-221, June.

    More about this item

    Keywords

    Tariff; Effective Protection; Trade in Value Added; International Outsourcing; Competitiveness;
    All these keywords.

    JEL classification:

    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:60675. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.