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Article
Tariff Equivalent of Technical Barriers to Trade with Imperfect Substitution and Trade Costs
American Journal of Agricultural Economics
  • Chengyan Yue, Iowa State University
  • John Beghin, Iowa State University
  • Helen H. Jensen, Iowa State University
Document Type
Article
Publication Version
Submitted Manuscript
Publication Date
11-1-2006
DOI
10.1111/j.1467-8276.2006.00908.x
Abstract

The price-wedge method yields a tariff-equivalent estimate of technical barriers to trade (TBT). An extension of this method accounts for imperfect substitution between domestic and imported goods and incorporates recent findings on trade costs. We explore the sensitivity of this revamped TBT estimate to its key determinants (substitution elasticity, preference for home good, and trade cost). We use the augmented approach to investigate the recent Japan–U.S. apple trade dispute and find that removing the Japanese TBT would yield limited export gains to the United States. We then draw policy implications of our findings.

Comments

This is a working paper of an article from American Journal of Agricultural Economics 88 (2006): 947, doi: 10.1111/j.1467-8276.2006.00908.x.

Citation Information
Chengyan Yue, John Beghin and Helen H. Jensen. "Tariff Equivalent of Technical Barriers to Trade with Imperfect Substitution and Trade Costs" American Journal of Agricultural Economics Vol. 88 Iss. 4 (2006) p. 947 - 960
Available at: http://works.bepress.com/john-beghin/108/