Choked By Red Tape? The Political Economy of Wasteful Trade Barriers

Giovanni Maggi, Monika Mrazova () and J. Peter Neary

No 24739, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Red-tape barriers (RTBs) are an important source of trade costs, but have received little scholarly attention to date. Here we examine the economic-political determinants of RTBs and their effects on trade. Because of their wasteful nature, RTBs have very different implications from those of more traditional trade barriers. In particular, RTBs have important impacts on the extensive margin of trade, and respond in non-standard ways to changes in tariffs and natural trade costs. We argue that taking into account the endogenous response of RTBs is crucial for understanding the effects of tariff liberalization and globalization on trade and welfare.

JEL-codes: D72 F13 (search for similar items in EconPapers)
Date: 2018-06
New Economics Papers: this item is included in nep-int and nep-pol
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Citations: View citations in EconPapers (4)

Published as Giovanni Maggi & Monika Mrázová & J. Peter Neary, 2022. "CHOKED BY RED TAPE? THE POLITICAL ECONOMY OF WASTEFUL TRADE BARRIERS," International Economic Review, vol 63(1), pages 161-188.

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Working Paper: Choked by Red Tape? The Political Economy of Wasteful Trade Barriers (2018)
Working Paper: Choked by Red Tape? The Political Economy of Wasteful Trade Barriers (2018)
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