Retaliatory temporary trade barriers: New facts and patterns

Davide Furceri, Jonathan Ostry, Chris Papageorgiou () and Pauline Wibaux

Journal of Policy Modeling, 2021, vol. 43, issue 4, 873-891

Abstract: This paper takes a fresh look into the role of Temporary Trade Barriers (TTBs) and whether they are introduced for strategic reasons. We construct a novel sectoral measure of retaliation using daily bilateral data on TTB responses in 1220 subsectors across a panel of 25 advanced and emerging economies over 1989–2015. We use this measure to present novel stylized facts and patterns suggesting that strategic considerations may be more important (in terms of intensity and frequency) than commonly understood from the existing literature, which has tended to ignore within-year responses. Our evidence indicates that retaliation actually often consists of responses across many sectors and indeed that same-sector retaliation is far from being the norm.

Keywords: Trade retaliation; Temporary trade barriers; Sectoral measures; Facts; Patterns (search for similar items in EconPapers)
JEL-codes: F13 F14 F15 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jpolmo:v:43:y:2021:i:4:p:873-891

DOI: 10.1016/j.jpolmod.2021.02.011

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