Trade restrictiveness indices in the presence of externalities: An application to non-tariff measures
Journal article: We extend the trade restrictiveness index approach to the case of market imperfections and domestic regulations addressing them. We focus on standard-like non-tariff measures (NTMs) affecting cost of production and potentially enhancing demand by reducing negative externalities. We apply the framework to the database of Kee et al. (2009) and derive ad valorem equivalents (AVEs) for technical measures. About 39% of the product lines affected by NTMs exhibit negative AVEs, indicating a net trade-facilitating effect of these measures. Accounting for these effects significantly reduces previous measures of countries’ trade policy restrictiveness obtained while constraining these NTMs to be trade-reducing.
Author(s)
John Christopher Beghin, Anne-Célia Disdier, Stephan S. Marette
Journal
- Canadian Journal of Economics
Date of publication
- 2015
Keywords
- Non-tariff measures
Pages
- 1513-1536
URL of the HAL notice
Version
- 1
Volume
- 48