Trade restrictiveness indices in the presence of gxternalities: An application to non-tariff measures

John Christopher Beghin, Anne Célia Disdier, Stéphan Marette

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

We extend the trade restrictiveness index approach to the case of market imperfections and domestic regulations addressing them. We focus on standard-like non-tariff measures (NTMs) affecting cost of production and potentially enhancing demand by reducing negative externalities. We apply the framework to the database ofKee et aL (2009) and derive ad valorem equivalents (AVEs) for technical measures. About 390/o ofthe product lines affected by NTMs exhibit negative AVEs, indicating a net trade-facilitating effect of these measures. Accounting for these effects significantly reduces previous measures of countries' trade policy restrictiveness obtained while constraining these NTMs to be trade-reducing.

Original languageEnglish (US)
Title of host publicationNontariff Measures and International Trade
PublisherWorld Scientific Publishing Co. Pte Ltd
Pages81-104
Number of pages24
ISBN (Electronic)9789813144415
ISBN (Print)9789813144408
DOIs
StatePublished - Nov 28 2016
Externally publishedYes

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)
  • Business, Management and Accounting(all)
  • Social Sciences(all)

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