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Trade Barriers and Trade Flows across Countries and Industries

Jong-Wha Lee and Phillip Swagel

No 4799, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We use disaggregated data on trade flows, production, and trade barriers for 41 countries in 1988 to examine the political and economic determinants of non-tariff barriers, as well as the impact of protection (both tariff and non-tariff) on trade flows. We use an econometric framework that allows for the simultaneous determination of trade barriers and trade flows. Our results are consistent with political-economy theories of the determinants of protection: even after accounting for industry-specific factors, nations tend to protect industries that are weak, in decline, and threatened by import competition. Countries also give more protection to large industries; these might be thought of as politically important. Nations use tariffs, non-tariff barriers, and exchange rate controls as complementary instruments of protection.

JEL-codes: F12 F13 (search for similar items in EconPapers)
Date: 1994-07
Note: ITI
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Published as Review of Economics and Statistics, Vol. 79, no. 3 (August 1997): 372-382.

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Related works:
Journal Article: Trade Barriers And Trade Flows Across Countries And Industries (2000) Downloads
Working Paper: Trade barriers and trade flows across countries and industries (1994) Downloads
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