Trade Restrictiveness Indices in Presence of Externalities : An Application to Non-Tariff Measures

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 increasing product quality or reducing negative externalities. We apply the framework to the database of Kee et al. (2009) and derive ad valorem equivalents (AVEs) for NTMs. Half of the product lines affected by NTMs exhibit negative AVEs, indicating a net trade-facilitating effect of NTMs. Accounting for these effects significantly reduces previous measures of countries' trade policy restrictiveness obtained while constraining NTMs to be trade reducing.
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Pré-publication, Document de travail
G-MonD Working Paper n°27. 2014
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Soumis le : jeudi 4 septembre 2014 - 14:37:20
Dernière modification le : mercredi 25 avril 2018 - 01:21:55
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  • HAL Id : hal-00961727, version 2

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John Christopher Beghin, Anne-Célia Disdier, Stéphan Marette. Trade Restrictiveness Indices in Presence of Externalities : An Application to Non-Tariff Measures. G-MonD Working Paper n°27. 2014. 〈hal-00961727v2〉

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