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

Arbeitspapier

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 of Kee et al. (2009) and derive ad valorem equivalents (AVEs) for NTMs. About 39% of the product lines affected by NTMs exhibit negative AVEs, indicating a trade-facilitating effect of these measures. Accounting for the trade-facilitating effect of NTMs significantly reduces previous measures of countries' trade policy restrictiveness obtained while constraining these NTMs to be trade reducing.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 4968

Classification and Topics

• Classification: Wirtschaft ; Trade Policy; International Trade Organizations ; Trade and Environment ; Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
• Subject: non-tariff measures ; externalities ; ad valorem equivalents ; trade restrictiveness indices

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Beghin, John ; Disdier, Anne-Célia ; Marette, Stéphan
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2014

Further information

• Handle: http://hdl.handle.net/10419/103096
• Last update: 10.03.2025, 11:44 AM CET