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Author
Ronen Eyal (University of Warsaw)
Title
Tariffs and Non-tariff Measures : Substitutes or Complements : a Cross-Country Analysis
Source
Bank i Kredyt, 2017, nr 1, s. 45-71, aneks, bibliogr. 26 poz.
Bank & Credit
Keyword
Efekt substytucyjny, Pozataryfowe bariery handlowe, Analiza porównawcza, Przegląd literatury
Substitution effect, Non-tariff trade barriers, Comparative analysis, Literature review
Note
JEL Classification: F13, F14, F53
summ.
The research for this paper has been supported by the framework of the Dissettle project. Dissettle: Dispute Settlement in Trade: Training in Law and Economics, Marie Curie Initial Training Network (ITN), financed by the European Commission; IP: FP7-PEOPLE-2010-ITN.
Company
Światowa Organizacja Handlu
World Trade Organization (WTO)
Abstract
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. (original abstract)
Accessibility
The Main Library of the Cracow University of Economics
The Library of Warsaw School of Economics
The Library of University of Economics in Katowice
The Main Library of Poznań University of Economics and Business
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ISSN
0137-5520
Language
eng
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