Used automobile protection and trade: Gravity and ordered probit analysisDanilo Pelletiere () and Kenneth Reinert () Empirical Economics, 2004, vol. 29, issue 4, pages 737-751 Abstract: There is a great deal of protection against used automobile imports in many countries of the world that has gone largely unnoticed in the trade policy literature. Indeed, there has been no recent attempt to systematically analyze the determinants of used automobile trade and the role of protection in this trade. This paper makes a preliminary attempt, introducing an ordered measure of protection levels in 132 countries. A gravity model of used automobile exports from the United States shows that protection measures against used automobile import have a statistically-significant, suppressive effect on trade flows. An ordered probit analysis of the protection measures themselves points to new automobile production interests as a key factor behind used automobile protection. Other relevant explanatory factors of protection are income levels, democratic regime, transitional status, WTO membership, and income distribution. Copyright Springer-Verlag 2004 Keywords: Used goods; international trade; gravity model; ordered probit; F13; F17; C20; C25 (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: http://EconPapers.repec.org/RePEc:spr:empeco:v:29:y:2004:i:4:p:737-751 Ordering information: This journal article can be ordered from Access Statistics for this article Empirical Economics is edited by Badi H. Baltagi, Heather M. Anderson and Bernd Fitzenberger More articles in Empirical Economics from Springer |
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