Alternative Approaches in Estimating the Economic Effects of Non-Tariff Measures: Results from Newly Quantified Measures (original) (raw)

Notes on Detecting The Effects of Non Tariff Measures

Journal of Economic Integration, 2011

Alternative approaches to estimating the effects of non-tariff measures (NTMs) on trade flows are discussed and evaluated critically. Recent econometric studies point to three results: (i) NTM restrictiveness measures based on an aggregate of 'core' NTMs are more restrictive than existing tariffs and, because of export composition towards agricultural products, in the aggregate, these 'core' NTMs limit marketaccess most for low-income countries; (ii) Proxies for individual NTMs, have a negative effect on the volume of bilateral trade for the detailed product under scrutiny; (iii) harmonization of standards is trade enhancing. Case studies confirm several of these patterns, and also that perceived severity of NTMs varies across products and across destinations for a given product. Across broadly-defined imports at the section level, NTMs are more restrictive than the corresponding tariffs with two-thirds of the AVE estimates in the 25%-50% range. Technical regulations and non-automatic licensing are the most used single-NTM measures and the restrictiveness of technical regulations increases with income per capita.

Non-Tariff Measures: Data and Quantitative Tools of Analysis

HAL (Le Centre pour la Communication Scientifique Directe), 2018

This paper provides a tour d'horizon on where we stand with the information, and analysis of Non-Tariff Measures (NTMs). The analysis of NTMs has been fragmentary, not keeping pace with their increasing prevalence and their increasing complexity. Capturing and classifying these NTMs is still a daunting task because of the data limitations identified in this paper: comprehensiveness, diversification, lack of precision, dimensionality, time dimension (NTMs are rarely available for several years which makes it difficult to control for confounding factors). Most NTM data inventories are registered on a binary basis restricting the use of descriptive statistics to a few indices. Disentangling precautionary from protectionist motives of NTMs is difficult as the presence and/or intensity of NTMs is likely to depend on import volumes. Quantity-based and price-based approaches to estimate AVEs are discussed along with methods to measure distortionary costs of NTMs. Examples of 'top down' and 'bottom up' approaches are shown to reveal some stylized patterns. Among these, trade costs have been falling around the world, but lowincome countries are not catching up, for reasons likely to include the uneven effects of reductions in transport costs and the greater cost-raising effects of technical barriers to trade for low-income countries. For all income groups, the average trade restrictiveness of NTMs is estimated to be higher than the average restrictiveness of tariffs and the average restrictiveness of NTMs is estimated to be higher for low-income countries.

Tariffs and Non-Tariff Measures: Substitutes or Complements. A Cross-Country Analysis

2017

Alongside the global tariff liberalization, a growing body of evidence demonstrates the rise in the use of non-tariff measures (NTMs), which suggests a substitution effect between these two import policy instruments. Yet, detailed economic data reveals that in countries with lower tariff rates (developed countries), the use of NTMs is significantly lower compared to developing countries, which implies a possible complementary effect between tariffs and NTMs across nations. Using a dataset of Kee, Nicita and Olarreaga (2009) on ad valorem tariff equivalents of NTMs, at a very disaggregated product level, this paper explores the determinants of NTMs and their substitutability/complementarity relations with tariff barriers. While exploiting the country variation, it demonstrates the decreasing trend of substitutability between the two import policy instruments with the rise in economic development. In particular, a significant complementarity correlation exists between the two trade measures among the wealthiest nations, implying a stronger commitment to freer trade.

No. 2004-09-A OFFICE OF ECONOMICS WORKING PAPER U.S. INTERNATIONAL TRADE COMMISSION

2004

Commission. Office of Economics working papers are the result of the ongoing professional research of USITC Staff and are solely meant to represent the opinions and professional research of individual authors. These papers are not meant to represent in any way the views of the U.S. International Trade Commission or any of its individual Commissioners. Working papers are circulated to promote the active exchange of ideas between USITC Staff and recognized experts outside the USITC, and to promote professional development of Office staff by encouraging outside professional critique of staff research. Address correspondence to:

Reforming Non-Tariff Measures: From Evidence to Policy Advice

Reforming Non-Tariff Measures: From Evidence to Policy Advice, 2018

This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Nothing herein shall constitute or be considered to be a limitation upon or waiver of the privileges and immunities of The World Bank, all of which are specifically reserved.

Non-Tariff Measures: What Do We Know, What Might Be Done?

Journal of Economic Integration, 2011

With the reduction in tariff barriers, Non-tariff and behind-the-border measures (NTM and BTB) have increased in importance. This paper surveys the state of knowledge with the view to drawing implications for policy suggestions to reduce those NTM barriers that are welfare reducing. Following a description of data bases and their shortcomings, the paper reviews the state of understanding on the effects of NTMs on trade flows. The more difficult issue of translating these effects into welfare implications are covered next. The paper concludes with different approaches at reducing NTMs.

Non-Tariff Measures: What do we Know, What Should be Done?

2011

With the reduction in tariff barriers, Non-tariff and behind-the-border measures (NTM and BTB) have increased in importance. This paper surveys the state of knowledge with the view to drawing implications for policy suggestions to reduce those NTM barriers that are welfare reducing. Following a description of data bases and their shortcomings, the paper reviews the state of understanding on the