Non-tariff measures, preferential trade agreements, and prices: new evidence

Details

Serval ID
serval:BIB_9FF2D06E5CDA
Type
Article: article from journal or magazin.
Collection
Publications
Institution
Title
Non-tariff measures, preferential trade agreements, and prices: new evidence
Journal
Review of World Economics
Author(s)
Cadot O., Gourdon J.
ISSN
1610-2878
Publication state
Published
Issued date
2016
Peer-reviewed
Oui
Volume
152
Number
2
Pages
227-249
Language
english
Abstract
Combining for the first time a new dataset of non-tariff measures (NTMs) in 65 countries with the CEPII's unit values database, we estimate average ad-valorem equivalents (AVEs) for sanitary and phytosanitary, technical-barriers-to trade and other measures by section of the Harmonized System of product classification. While most existing AVEs are obtained from indirect quantity-based estimation, ours are obtained from direct price-gap estimation. They lie in a single-digit range, i.e. substantially lower than previous estimates based on older data. Our results may reflect the progressive phasing out of command-and-control instruments such as quantitative restrictions in many countries; they also suggest that sanitary and technical regulations have not substituted for them as trade-restrictive interventions. Most interestingly, we show that deep-integration clauses in regional trade agreements, in particular the mutual recognition of conformity-assessment procedures, substantially reduce the price-raising effect of NTMs, possibly reflecting lower compliance costs.
Keywords
Non-tariff measures, Price gaps, Regional trade agreements, Deep integration, Harmonization, Unit values
Web of science
Create date
20/12/2016 15:24
Last modification date
20/08/2019 16:06
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