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Non-tariff Measures vs. Tariffs: A Fresh Look at the Evidence

Author

Listed:
  • David J. Kuenzel

    (Department of Economics, Wesleyan University)

Abstract

This paper examines the relationship between tariffs and the usage of non-tariff measures (NTMs) for a product-level global panel of 97 countries over the period 1996-2020. Using the most comprehensive NTM data set to date, I find that tariff levels or changes therein are of little relevance for implementing NTMs. Instead, smaller tariff overhangs, the difference between WTO members’ bound and applied tariff rates, emerge as a significant predictor of future NTM actions. The inverse link between tariff overhangs and NTMs is observable both (i) at the aggregate NTM level and (ii) for the large majority of different NTM subcategories.

Suggested Citation

  • David J. Kuenzel, 2023. "Non-tariff Measures vs. Tariffs: A Fresh Look at the Evidence," Wesleyan Economics Working Papers 2023-004, Wesleyan University, Department of Economics.
    • Handle: RePEc:wes:weswpa:2023-004
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    References listed on IDEAS

    as
    1. Egger, Peter & Larch, Mario, 2008. "Interdependent preferential trade agreement memberships: An empirical analysis," Journal of International Economics, Elsevier, vol. 76(2), pages 384-399, December.
    2. Beshkar, Mostafa & Bond, Eric W. & Rho, Youngwoo, 2015. "Tariff binding and overhang: Theory and evidence," Journal of International Economics, Elsevier, vol. 97(1), pages 1-13.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations

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