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Domestic distortions and international trade
Anderson, James E.; Neary, J. Peter
In this paper, we investigate techniques for measuring the trade policy equivalent of domestic distortions, using a distance function approach. Our measure, the Trade Restrictiveness Index, is shown to equal the uniform tariff which is welfare-equivalent to a given pattern of domestic taxes and subsidies. We extend the Index to incorporate taxes in markets for non-traded goods and factors of production and illustrates its operationality with an application to liberalisation in Mexican agriculture. We conclude that our Index has considerable potential in empirical work and as an aid to trade negotiations. World Bank A hard copy is available in UCD Library at GEN 330.08 IR/UNI
Keyword(s): Trade policy; Domestic distortions; Producer and consumer subsidy equivalents; Trade restrictiveness index; F13; F10; Commercial policy; International trade
Publication Date:
Type: Working paper
Peer-Reviewed: Unknown
Language(s): English
Institution: University College Dublin
Publisher(s): University College Dublin. School of Economics
File Format(s): other; application/pdf
First Indexed: 2012-08-25 05:22:13 Last Updated: 2018-10-11 15:44:14