Remaking Ad valorem equivalents of non-tariff measures in ASEAN

Lili Yan Ing and Olivier Cadot

No DP-2017-09, Working Papers from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: To measure Ad valorem tariff equivalents (AVEs) of non-tariff measures (NTMs), we propose a new alternative that relies on the estimation of bilateral trade flows on two-way panels at the HS 2-digit level with importer, exporter, and product fixed effects and interaction terms between NTM variables and a full vector of country-specific characters. Our results show AVEs for technical barriers to trade measures on manufactured products, for ASEAN countries and the whole sample are 4.5% and 5%, respectively. The AVEs for sanitary and phytosanitary measures on agricultural and food products for ASEAN countries and the whole sample are 6.5% and 6.7%, respectively. It should be noted that AVEs can mean very different things depending on whether they play as correction of a market failure. This depends on the technical capabilities of domestic regulatory agencies.

Keywords: Non-tariff measures; ad valorem equivalent; trade; tariff; regional trade; ASEAN (search for similar items in EconPapers)
JEL-codes: F1 F5 F6 (search for similar items in EconPapers)
Pages: 29 pages.
Date: 2017-10
New Economics Papers: this item is included in nep-agr, nep-int and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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