The Effects of Protection on the Patter of Trade: A Disaggregated Analysis (a)

Jon Haveman (), U.C. Nair and Jerry Thursby ()

Working Papers from Purdue University, Krannert School of Management - Center for International Business Education and Research (CIBER)

Abstract: We analyze the effects of protection using disaggregated data. This permits analysis of distinct effects of tariffs and NTBs on trade. Our analysis indicates that tariffs tend to shift trade towards larger exporters. We find significant trade diversion caused by tariffs. In the case of NTBs, we find quantitative barriers are more likely to raise prices than are price restrictions. Quantity barriers appear to lead exporters to concentrate on higher priced varieties. We do not find much evidence to suggest that countries not targeted by an NTB gain at the expense of targeted countries. We find that NTBs tend to substitute for tariffs.

Keywords: PROTECTIONISM; TARIFFS; TRADE (search for similar items in EconPapers)
JEL-codes: F13 (search for similar items in EconPapers)
Date: 1997

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Persistent link: http://EconPapers.repec.org/RePEc:fth:purkib:97-008

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