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Non-Tariff Barriers and Trade Liberalization

  • Simon P. Anderson

    ()

  • Nicolas Schmitt

    ()

This paper shows that governments have no incentive to introduce non-tariff barriers when they are free to set tariffs but they do when tariffs are determined cooperatively. We then show three results. First, with trade liberalization, there is a progression from using tariffs only to quotas, and to antidumping constraints (when quotas are jointly eliminated). Second, there is a narrowing of the range of industries in which each instrument is used. Third,the degree of tariff liberalization and of replacement of tariffs by NTBs depend on industry characteristics.These results are roughly in line with the empirical evidence.

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File URL: http://www.virginia.edu/economics/RePEc/vir/virpap/papers/virpap340.pdf
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Paper provided by University of Virginia, Department of Economics in its series Virginia Economics Online Papers with number 340.

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Length: 35 pages
Date of creation: Jan 2000
Date of revision:
Handle: RePEc:vir:virpap:340
Contact details of provider: Web page: http://www.virginia.edu/economics/home.html

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  1. Moore, Michael O, 1992. "Rules or Politics? An Empirical Analysis of ITC Anti-dumping Decisions," Economic Inquiry, Western Economic Association International, vol. 30(3), pages 449-66, July.
  2. Anderson, S. P. & Schmitt, N. & Thisse, J.-F., . "Who benefits from antidumping legislation?," CORE Discussion Papers RP 1146, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  3. Marvel, Howard P & Ray, Edward J, 1983. "The Kennedy Round: Evidence on the Regulation of International Trade in the United States," American Economic Review, American Economic Association, vol. 73(1), pages 190-97, March.
  4. James E. Anderson, 1993. "Domino Dumping, II: Anti-dumping," Boston College Working Papers in Economics 219, Boston College Department of Economics.
  5. Brander, James & Krugman, Paul, 1983. "A 'reciprocal dumping' model of international trade," Journal of International Economics, Elsevier, vol. 15(3-4), pages 313-321, November.
  6. Falvey, Rodney E & Lloyd, P J, 1991. "Uncertainty and the Choice of Protective Instrument," Oxford Economic Papers, Oxford University Press, vol. 43(3), pages 463-78, July.
  7. Ray, Edward John, 1981. "The Determinants of Tariff and Nontariff Trade Restrictions in the United States," Journal of Political Economy, University of Chicago Press, vol. 89(1), pages 105-21, February.
  8. Kyle Bagwell & Robert W. Staiger, 1988. "A Theory of Managed Trade," NBER Working Papers 2756, National Bureau of Economic Research, Inc.
  9. Krishna, Kala, 1989. "Trade restrictions as facilitating practices," Journal of International Economics, Elsevier, vol. 26(3-4), pages 251-270, May.
  10. Fischer, Ronald D., 1992. "Endogenous probability of protection and firm behavior," Journal of International Economics, Elsevier, vol. 32(1-2), pages 149-163, February.
  11. Kyle Bagwell & Robert W. Staiger, 1995. "Protection and the Business Cycle," Discussion Papers 1130, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  12. Rosendorff, B Peter, 1996. "Voluntary Export Restraints, Antidumping Procedure, and Domestic Politics," American Economic Review, American Economic Association, vol. 86(3), pages 544-61, June.
  13. Brander, James A., 1981. "Intra-industry trade in identical commodities," Journal of International Economics, Elsevier, vol. 11(1), pages 1-14, February.
  14. Kaempfer, William H & Marks, Stephen V & Willett, Thomas D, 1988. "Why Do Large Countries Prefer Quantitative Trade Restrictions?," Kyklos, Wiley Blackwell, vol. 41(4), pages 625-46.
  15. James Nieberding, 1999. "The Effect of U.S. Antidumping Law on Firms' Market Power: An Empirical Test," Review of Industrial Organization, Springer, vol. 14(1), pages 65-84, February.
  16. McCulloch, Rachel, 1987. "Why do governments prefer nontariff barriers? A comment on deardorff," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 26(1), pages 217-221, January.
  17. Deardorff, Alan V., 1987. "Why do governments prefer nontariff barriers?," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 26(1), pages 191-216, January.
  18. Gallaway, Michael P. & Blonigen, Bruce A. & Flynn, Joseph E., 1999. "Welfare costs of the U.S. antidumping and countervailing duty laws," Journal of International Economics, Elsevier, vol. 49(2), pages 211-244, December.
  19. Robert Baldwin & Jeffrey Steagall, 1994. "An analysis of ITC decisions in antidumping, countervailing duty and safeguard cases," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 130(2), pages 290-308, June.
  20. Anderson, James E, 1992. "Domino Dumping, I: Competitive Exporters," American Economic Review, American Economic Association, vol. 82(1), pages 65-83, March.
  21. bagwell, K. & Staiger, R.W., 1995. "Protection and Business cycle," Working papers 9511, Wisconsin Madison - Social Systems.
  22. Cassing, James H. & Hillman, Arye L., 1985. "Political influence motives and the choice between tariffs and quotas," Journal of International Economics, Elsevier, vol. 19(3-4), pages 279-290, November.
  23. Brian R. Copeland, 1990. "Strategic Interaction among Nations: Negotiable and Non-negotiable Trade Barriers," Canadian Journal of Economics, Canadian Economics Association, vol. 23(1), pages 84-108, February.
  24. Baldwin, Robert E., 1984. "Trade policies in developed countries," Handbook of International Economics, in: R. W. Jones & P. B. Kenen (ed.), Handbook of International Economics, edition 1, volume 1, chapter 12, pages 571-619 Elsevier.
  25. Gary S. Becker, 1983. "A Theory of Competition Among Pressure Groups for Political Influence," The Quarterly Journal of Economics, Oxford University Press, vol. 98(3), pages 371-400.
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