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Non-Tariff Barriers In Computable General Equilibrium Modelling

Author

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  • Marco Fugazza
  • Jean-Christophe Maur

Abstract

With diminishing tariff s, the focus of trade policy makers and analysts is logically turning towards non-tariff barriers (NTBs), but there much remains to be done. It is well-know that tackling NTBs poses many challenges for the analyst because of their diverse and complex nature, and the lack of available evidence. NTBs pose also particular diffi culties to computable/applied general equilibrium (CGE) modelling, traditionally more comfortable with policies whose impact can be interpreted into direct effects on prices. This research provides a quantifi cation of the impact of NTBs at the global level. The model we use is signifi cantly larger than in previous studies, and to our knowledge, the fi rst truly global one. The main focus of this research, however, is to discuss and question the various treatments of NTBs in CGE models with a specifi c application of the Global Trade Analysis Project (GTAP) standard model, the workhorse of trade policy CGE analysis. We fi nd that serious estimation and modelling eff orts remain to be undertaken in order to make CGE modelling a useful policy tool to analyze NTBs. Casual policy inferences from loose specifi cations may indeed lead to serious analytical mistakes. We show that while using the same robust estimates of NTB incidence we obtain vastly diff erent results under diff erent model specifications.

Suggested Citation

  • Marco Fugazza & Jean-Christophe Maur, 2008. "Non-Tariff Barriers In Computable General Equilibrium Modelling," UNCTAD Blue Series Papers 38, United Nations Conference on Trade and Development.
  • Handle: RePEc:unc:blupap:38
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    References listed on IDEAS

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    Cited by:

    1. repec:fgv:epgrbe:v:71:y:2017:i:3:a:59487 is not listed on IDEAS
    2. Cororaton, Caesar B., 2016. "Potential Effects of the Regional Comprehensive Economic Partnership on the Philippine Economy," Research Paper Series DP 2016-30, Philippine Institute for Development Studies.
    3. Mkuna, Eliaza, 2014. "East Africa Community (EAC) Non Tariff Barriers and their Effects on Tanzanian Small and Medium Agro Enterprises Cross Border Trade," Research Theses 243444, Collaborative Masters Program in Agricultural and Applied Economics.
    4. Cororaton, Caesar B., 2016. "Potential Effects of the Regional Comprehensive Economic Partnership on the Philippine Economy," Discussion Papers DP 2016-30, Philippine Institute for Development Studies.
    5. Caesar Cororaton, 2016. "Potential Effects of the Regional Comprehensive Economic Partnership on the Philippine Economy," Working Papers id:11266, eSocialSciences.
    6. Ferraz, Lucas Pedreira do Couto & Ribeiro, Marcel & Monasterio, Pedro, 2017. "On the Effects of Non-Tariff Measures on Brazilian Exports," Revista Brasileira de Economia - RBE, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil), vol. 71(3), September.
    7. Frank Vöhringer & Jean-Marie Grether & Nicole A. Mathys, 2013. "Trade and Climate Policies: Do Emissions from International Transport Matter?," The World Economy, Wiley Blackwell, vol. 36(3), pages 280-302, March.
    8. Beckman, Jayson & Arita, Shawn & Mitchell, Lorraine, 2015. "The Transatlantic Trade and Investment Partnership and Agriculture: A Quantitative Analysis," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205056, Agricultural and Applied Economics Association;Western Agricultural Economics Association.

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