Domestic Distortions and International Trade

James Anderson, Geoffrey J Bannister and J. Peter Neary

International Economic Review, 1995, vol. 36, issue 1, 139-57

Abstract: In this paper, the authors develop techniques for measuring the trade policy equivalent of domestic distortions using a distance function approach. Their measure, the trade restrictiveness index, is shown to equal the uniform tariff that is welfare equivalent to a given pattern of domestic taxes and subsidies. The authors extend the index to incorporate taxes in markets for nontraded goods and factors of production and illustrate its operationality with an application to liberalization in Mexican agriculture. They conclude that their index has considerable potential in empirical work and as an aid to trade negotiators. Copyright 1995 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

Date: 1995
References: Add references at CitEc
Citations: View citations in EconPapers (34)

Downloads: (external link)
http://links.jstor.org/sici?sici=0020-6598%2819950 ... 0.CO%3B2-8&origin=bc full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
Working Paper: Domestic Distortions and International Trade (1993)
Working Paper: Domestic Distortions and International Trade (1993)
Working Paper: Domestic distortions and international trade (1993)
Working Paper: Domestic distortions and international trade (1992)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ier:iecrev:v:36:y:1995:i:1:p:139-57

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0020-6598

Access Statistics for this article

International Economic Review is currently edited by Harold L. Cole

More articles in International Economic Review from Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association 160 McNeil Building, 3718 Locust Walk, Philadelphia, PA 19104-6297. Contact information at EDIRC.
Bibliographic data for series maintained by Wiley-Blackwell Digital Licensing () and ().