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Article
Trade restrictiveness indices in the presence of externalities: An application to non-tariff measures
Canadian Journal of Economics
  • John Beghin, Iowa State University
  • Anne-Celia Disdier, Paris School of Economics
  • Stephan Marette, INRA
Document Type
Article
Publication Version
Submitted Manuscript
Publication Date
1-1-2015
DOI
10.1111/caje.12157
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 of Kee et al. (2009) and derive ad valorem equivalents (AVEs) for technical measures. About 39% of the 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.

Comments

This is a working paper of an article from Canadian Journal of Economics 48 (2015): 1513, doi:10.1111/caje.12157. Posted with permission.

Citation Information
John Beghin, Anne-Celia Disdier and Stephan Marette. "Trade restrictiveness indices in the presence of externalities: An application to non-tariff measures" Canadian Journal of Economics Vol. 48 Iss. 4 (2015) p. 1513 - 1536
Available at: http://works.bepress.com/john-beghin/107/