Tariff rates in gravity
Kazunobu Hayakawa and
Taiyo Yoshimi
The Journal of International Trade & Economic Development, 2024, vol. 33, issue 8, 1477-1494
Abstract:
This paper considers the case where multiple tariff schemes (e.g. general and preferential schemes) are available between trading countries. We incorporate these tariffs into gravity equations and estimate them by the Pseudo-Poisson maximum likelihood technique. The results show that omitting either tariff type leads to significant estimates biases. If fixed effects to control other tariffs are not included in the model, both preferential and general tariffs are to be introduced in the gravity equation. Indeed, some estimation results for precision metals show that reducing both types of tariffs contributes to significantly increasing trade values. However, reducing general tariffs does not always have a trade-enhancing effect. In leather products, for example, its impact was insignificant. Nevertheless, the reduction of preferential tariffs was again found to increase trade values significantly.
Date: 2024
References: Add references at CitEc
Citations:
Downloads: (external link)
http://hdl.handle.net/10.1080/09638199.2023.2277779 (text/html)
Access to full text is restricted to subscribers.
Related works:
Working Paper: Tariff rates in gravity (2020) 
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:taf:jitecd:v:33:y:2024:i:8:p:1477-1494
Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RJTE20
DOI: 10.1080/09638199.2023.2277779
Access Statistics for this article
The Journal of International Trade & Economic Development is currently edited by Pasquale Sgro, David E.A. Giles and Charles van Marrewijk
More articles in The Journal of International Trade & Economic Development from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().