PROTECTION BY TARIFF BARRIERS AND INTERNATIONAL TRANSACTION COSTS

Chris Milner

Scottish Journal of Political Economy, 2005, vol. 52, issue 1, 105-121

Abstract: Using estimates of protection in the EU market against US exports, this paper illustrates the relative importance of natural and policy sources of protection and the measurement errors induced in the measurement of effective protection by omitting transactions costs. It also considers protection in the EU ‘domestic’ and export market, and the implications of the elimination of tariff barriers only on relative rates of protection in ‘domestic’ and export markets.

Date: 2005
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