Artikel

Trade policy versus trade facilitation: An application using good old OLS

Trade policy barriers are only one element of overall trade costs. Among these, and due to the decrease in the influence of tariff barriers on trade over time, institutional barriers might increase in relative importance and become a key obstacle to the movements of goods across countries. This paper quantifies and compares the impact that a number of trade facilitation and trade policy barriers have on bilateral trade flows. A theoretically justified gravity model of trade is estimated by using the methodology proposed in Baier and Bergstrand (Bonus vetus OLS: A simple method for approximating international trade-cost effects using the gravity equation, 2009) for a cross-section of countries in the year 2000. Results indicate that institutional trade barriers have a greater impact on trade flows than tariff barriers. According to these findings, trade policy negotiation efforts should focus on facilitating trade processes and should be at the forefront of multilateral negotiations.

Language
Englisch

Bibliographic citation
Journal: Economics: The Open-Access, Open-Assessment E-Journal ; ISSN: 1864-6042 ; Volume: 6 ; Year: 2012 ; Issue: 2012-11 ; Pages: 1-38 ; Kiel: Kiel Institute for the World Economy (IfW)

Classification
Wirtschaft
Empirical Studies of Trade
Subject
tariff barriers
trade facilitation
sectoral trade
Außenhandelsbeschränkung
Zollpräferenz
Internationale Wirtschaftsbeziehungen
Gravitationsmodell
Nichttarifäre Handelshemmnisse
Welt

Event
Geistige Schöpfung
(who)
Márquez-Ramos, Laura
Martínez-Zarzoso, Inmaculada
Suárez-Burguet, Celestino
Event
Veröffentlichung
(who)
Kiel Institute for the World Economy (IfW)
(where)
Kiel
(when)
2012

DOI
doi:10.5018/economics-ejournal.ja.2012-11
Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Artikel

Associated

  • Márquez-Ramos, Laura
  • Martínez-Zarzoso, Inmaculada
  • Suárez-Burguet, Celestino
  • Kiel Institute for the World Economy (IfW)

Time of origin

  • 2012

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