Domestic distortions and international trade

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Title: Domestic distortions and international trade
Authors: Anderson, James E.Neary, J. Peter
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Date: 15-Dec-1992
Online since: 2009-12-03T16:40:58Z
Abstract: 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.
Item notes: A hard copy is available in UCD Library at GEN 330.08 IR/UNI
Funding Details: World Bank
Type of material: Working Paper
Publisher: University College Dublin. School of Economics
Series/Report no.: UCD Centre for Economic Research Working Paper Series; WP92/17
Keywords: Trade policyDomestic distortionsProducer and consumer subsidy equivalentsTrade restrictiveness index
metadata.dc.subject.classification: F13; F10
Subject LCSH: Commercial policy
International trade
Language: en
Status of Item: Not peer reviewed
Appears in Collections:Economics Working Papers & Policy Papers

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