IDEAS home Printed from https://ideas.repec.org/a/prg/jnlpol/v2019y2019i3id1242p231-252.html
   My bibliography  Save this article

Obchodně-politické překážky vývozu zboží z Evropské unie do USA: význam liberalizace obchodních toků
[Trade Policy Barriers to Imports of EU Goods to the USA: Importance of Liberalization of Trade Flows]

Author

Listed:
  • Milan Bednář

Abstract

The paper deals with effects of trade liberalization of EU goods exports to the USA. Despite the current protectionist tendencies of US President Donald Trump, the USA is strongly motivated to promote a deeper trade liberalization in the longer horizon, further strengthening bilateral trade flows, increasing economic efficiency, and thus contributing to the growth of both economies. The primary objective is to evaluate a hypothesis which states that reducing political trade barriers could notably increase the flows. We use gravity models and our own constructed non-tariff trade barrier time series based on tens of thousands of values for EU-28 countries in relation to the USA between 1995-2014. The data are obtained from an analysis of US legislature, in contrast to previous studies which used subjective survey data. The secondary goal is to assess whether a substantial reduction of non-tariff barriers is realistic or not, an issue which other researchers have overlooked. The level of bilateral non-tariff barriers imposed by the USA against EU exporters is rather low in the international comparison, a substantial reduction is not a reasonable assumption. We conclude that dealing with non-tariff trade barriers is crucial as it can substantially increase the bilateral trade flows. Even a less optimistic scenario, with a smaller decrease in trade barriers, suggests that the EU goods exports to the USA could be increased by more than 20%.

Suggested Citation

  • Milan Bednář, 2019. "Obchodně-politické překážky vývozu zboží z Evropské unie do USA: význam liberalizace obchodních toků [Trade Policy Barriers to Imports of EU Goods to the USA: Importance of Liberalization of Trade ," Politická ekonomie, Prague University of Economics and Business, vol. 2019(3), pages 231-252.
    • Handle: RePEc:prg:jnlpol:v:2019:y:2019:i:3:id:1242:p:231-252
    DOI: 10.18267/j.polek.1242
    as

    Download full text from publisher

    File URL: http://polek.vse.cz/doi/10.18267/j.polek.1242.html
    Download Restriction: free of charge
    File URL: http://polek.vse.cz/doi/10.18267/j.polek.1242.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.18267/j.polek.1242?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. David Hanson, 2010. "Limits to Free Trade," Books, Edward Elgar Publishing, number 12714.
    2. Mahdi Ghodsi & Julia Grübler & Oliver Reiter & Robert Stehrer, 2017. "The Evolution of Non-Tariff Measures and their Diverse Effects on Trade," wiiw Research Reports 419, The Vienna Institute for International Economic Studies, wiiw.
    3. Haq, Zahoor Ul & Meilke, Karl D. & Cranfield, John A.L., 2010. "Does the Gravity Model Suffer from Selection Bias?," Working Papers 90884, Canadian Agricultural Trade Policy Research Network.
    4. Gianluca Orefice, 2017. "Non-Tariff Measures, Specific Trade Concerns and Tariff Reduction," The World Economy, Wiley Blackwell, vol. 40(9), pages 1807-1835, September.
    5. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
    6. Christoph Scherrer & Elizabeth Abernathy, 2017. "Trump’s Trade Policy Agenda," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 52(6), pages 364-369, November.
    7. Ben Shepherd, 2012. "The Gravity Model of International Trade: A User Guide," ARTNeT Books and Research Reports, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), number brr11.
    8. Engler, Philipp & Tervala, Juha, 2018. "Welfare effects of TTIP in a DSGE model," Economic Modelling, Elsevier, vol. 70(C), pages 230-238.
    9. Gabriel Felbermayr & Mario Larch & Gabriel J. Felbermayr, 2013. "The Transatlantic Trade and Investment Partnership (TTIP): Potentials, Problems and Perspectives," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 14(02), pages 49-60, August.
    10. Jarko Fidrmuc, 2009. "Gravity models in integrated panels," Empirical Economics, Springer, vol. 37(2), pages 435-446, October.
    Full references (including those not matched with items on IDEAS)

    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. Lucie Davidova & Vladimir Benacek, 2014. "Determinants of Austrian International Trade: Analysis Based on the Gravity Model," Working Papers IES 2014/15, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Feb 2014.
    2. Malo Beguin, 2022. "Specific Trade Concerns and Technical Barriers to Trade: evidence from a new database," LIDAM Discussion Papers IRES 2022023, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    3. Dela‐Dem Doe Fiankor & Oliver‐Ken Haase & Bernhard Brümmer, 2021. "The Heterogeneous Effects of Standards on Agricultural Trade Flows," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(1), pages 25-46, February.
    4. Ariu, Andrea & Breinlich, Holger & Corcos, Gregory & Mion, Giordano, 2019. "The interconnections between services and goods trade at the firm-level," Journal of International Economics, Elsevier, vol. 116(C), pages 173-188.
    5. Alexander, D.W. & Merkert, R., 2021. "Applications of gravity models to evaluate and forecast US international air freight markets post-GFC," Transport Policy, Elsevier, vol. 104(C), pages 52-62.
    6. Cairns, Alexander P. & Meilke, Karl D., 2012. "Canadian Agrifood Export Performance and the Growth Potential of the BRICs and Next-11," Trade Policy Briefs 145973, Canadian Agricultural Trade Policy Research Network.
    7. Mahdi Ghodsi & Robert Stehrer, 2022. "Trade policy and global value chains: tariffs versus non-tariff measures," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 158(3), pages 887-916, August.
    8. Stacy Julius & Nnanna P. Azu & Maimuna Y. Muhammad, 2019. "Assessing the Impact of Terrorism in Trade Development in the SADC Region: A Gravity Model Approach," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 9(10), pages 1147-1159, October.
    9. Koji Kubo, 2014. "Myanmar's non-resource export potential after the lifting of economic sanctions: a gravity model analysis," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 21(1), pages 1-22, June.
    10. Lin, Xiaohua & Yang, Xiyan, 2017. "From human capital externality to entrepreneurial aspiration: Revisiting the migration-trade linkage," Journal of World Business, Elsevier, vol. 52(3), pages 360-371.
    11. Helble, Matthias & Ngiang, Boon-Loong, 2016. "From global factory to global mall? East Asia’s changing trade composition and orientation," Japan and the World Economy, Elsevier, vol. 39(C), pages 37-47.
    12. Haq, Zahoor Ul & Meilke, Karl D. & Cranfield, John A.L., 2011. "The Gravity Model and the Problem of Zero's in Agrifood Trade," Working Papers 116851, Canadian Agricultural Trade Policy Research Network.
    13. Richard Frensch, 2010. "European trade in parts and components : searching (for a trade model for searching) for offshoring evidence," Working Papers 280, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    14. Shahriar Kabir & Harry Bloch & Ruhul A Salim, 2018. "Global Financial Crisis And Southeast Asian Trade Performance: Empirical Evidence," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 30(2), pages 114-144, July.
    15. Suárez-Varela, Marta & Rodríguez-Crespo, Ernesto, 2022. "Is dirty trade concentrating in more polluting countries? Evidence from Africa," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 728-744.
    16. Nina Ranilović, 2017. "The Effects of Economic Integration on Croatian Merchandise Trade: A Gravity Model Study," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 59(3), pages 382-404, September.
    17. Christian Buelens & Marcel Tirpák, 2017. "Reading the Footprints: How Foreign Investors Shape Countries’ Participation in Global Value Chains," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 59(4), pages 561-584, December.
    18. Ehsan Rasoulinezhad, 2018. "A new evidence from the effects of Russia’s WTO accession on its foreign trade," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 8(1), pages 73-92, April.
    19. Sylvanus Kwaku Afesorgbor, 2013. "Revisiting the Effectiveness of African Economic Integration. A Meta-Analytic Review and Comparative Estimation Methods," Economics Working Papers 2013-13, Department of Economics and Business Economics, Aarhus University.
    20. Jaume Rosselló Nadal & María Santana Gallego, 2022. "Gravity models for tourism demand modeling: Empirical review and outlook," Journal of Economic Surveys, Wiley Blackwell, vol. 36(5), pages 1358-1409, December.

    More about this item

    Keywords

    European Union; United States of America; international trade; trade barriers; tariff andnon-tariff barriers; panel data; gravity models; ordinary least squares estimation; Poisson pseudomaximum likelihood estimation;
    All these keywords.

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • F10 - International Economics - - Trade - - - General
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General

    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:prg:jnlpol:v:2019:y:2019:i:3:id:1242:p:231-252. 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: Stanislav Vojir (email available below). General contact details of provider: https://edirc.repec.org/data/uevsecz.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.