The Effects of Non-Tariff Measures on Prices, Trade, and Welfare: CGE Implementation of Policy-Based Price Comparisons

Soamiely Andriamananjara, Judith Dean, Robert Feinberg, Michael J. Ferrantino, Rodney Ludema and Marinos E. Tsigas

No 15863, Working Papers from United States International Trade Commission, Office of Economics

Abstract: The global economic effects of eliminating certain significant categories of nontariff measures (NTMs) are estimated in a CGE context. As a first step, a database of institutional information identifying alleged instances of NTMs for particular products and countries is constructed based on WTO, U.S. Government, and EU sources, and compared with the UNCTAD policy inventory. This database is then concorded to a GTAP-feasible multiregion, multisector aggregation. Retail price data from the EIU CityData database, similarly concorded, are analyzed econometrically, taking into account systematic deviations from purchasing-power parity, to determine whether and to what extent the presence of alleged NTMs is associated with significantly higher prices. The estimated price effects are then used to calibrate a CGE simulation in order to obtain simulation estimates of trade and welfare effects of their removal, which can be disaggregated. Removal of the categories of NTMs under consideration yields global gains on the order of $90 billion. These gains arise notably from liberalization by Japan and the European Union by region, and from liberalization of apparel and machinery/equipment by sector.

Keywords: International; Relations/Trade (search for similar items in EconPapers)
Pages: 31
Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (52)

Downloads: (external link)
https://ageconsearch.umn.edu/record/15863/files/wp04004a.pdf (application/pdf)

Related works:
Working Paper: The Effects of Non-Tariff Measures on Prices, Trade, and Welfare: CGE Implementation of Policy-Based Price Comparisons (2004)
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:ags:uitcoe:15863

DOI: 10.22004/ag.econ.15863

Access Statistics for this paper

More papers in Working Papers from United States International Trade Commission, Office of Economics Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().