Trade Restrictiveness Indices in Presence of Externalities: An Application to Non-Tariff Measures

John Beghin (), Anne-Célia Disdier and Stéphan Marette ()

Working Papers from HAL

Abstract: 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 increasing product quality or reducing negative externalities. We apply the framework to the database of Kee et al. (2009) and derive ad valorem equivalents (AVEs) for NTMs. Half of the product lines affected by NTMs exhibit negative AVEs, indicating a net trade-facilitating effect of NTMs. Accounting for these effects significantly reduces previous measures of countries' trade policy restrictiveness obtained while constraining NTMs to be trade reducing.

Keywords: Non-tariff measures; Externalities; Ad valorem equivalents; Trade restrictiveness indices (search for similar items in EconPapers)
Date: 2014-09
New Economics Papers: this item is included in nep-int
Note: View the original document on HAL open archive server: https://pse.hal.science/hal-00961727v2
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Citations: View citations in EconPapers (7)

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Chapter: Trade restrictiveness indices in the presence of externalities: An application to non-tariff measures (2017)
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Working Paper: Trade restrictiveness indices in the presence of externalities: An application to non-tariff measures (2015)
Working Paper: Trade restrictiveness indices in the presence of externalities: An application to non-tariff measures (2015)
Working Paper: Trade restrictiveness indices in the presence of externalities: An application to non-tariff measures (2015)
Working Paper: Trade Restrictiveness Indices in Presence of Externalities: An Application to Non-Tariff Measures (2014)
Working Paper: Trade Restrictiveness Indices in Presence of Externalities: An Application to Non-Tariff Measures (2014)
Working Paper: Trade Restrictiveness Indices in Presence of Externalities: An Application to Non-Tariff Measures (2014)
Working Paper: Trade restrictiveness indices in presence of externalities: an application to non-tariff measures (2014)
Working Paper: Trade Restrictiveness Indices in Presence of Externalities: An Application to Non-Tariff Measures (2013)
Working Paper: Trade Restrictiveness Indices in Presence of Externalities: An Application to Non-Tariff Measures (2012)
Working Paper: Trade Restrictiveness Indices in Presence of Externalities: An Application to Non-Tariff Measures (2012)
Working Paper: Trade Restrictiveness Indices in Presence of Externalities: An Application to Non-Tariff Measures (2012)
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