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GTAP Resource #1045

"Market Access for GTAP: A Bilateral Measure of Merchandise Trade Protection"
by Bouët, Antoine, Lionel Fontagné, Mondher Mimouni and F. Von Kirchbach

The GTAP Consortium has developed a set of standardized databases extensively used by modelers. However, the bilateral dimension of trade barriers, which is central to assess the trade policies distortions, as well as the possibility to define scenarios of liberalization at the product level, are missing.

This paper proposes a new methodology to fill these two gaps by aggregating detailed information on bilateral trade barriers into the GTAP nomenclature. In addition, we will provide members of the Consortium with free access to a database using this methodology for exploratory purposes, in the GTAP format.

The data has been elaborated on the basis of the following principles:

(i) At first, it is essential to fully integrate the bilateral nature of the source information: bilateral preferences often turn into sizeable discrimination among partners;
(ii) All instruments that create obstacles to international trade (e.g. ‘ad valorem’ duties, specific duties, antidumping, quotas, prohibitions) must be taken into account;
(iii) These heterogeneous instruments need to be homogenized using ‘ad valorem’ equivalents.
(iv) Sectoral aggregation must be carefully conducted by minimizing the endogeneity bias.

MAcMaps (for Market ACcess Maps) has been developed by ITC and CEPII to integrate the major instruments of protection at the most detailed level as well as to tackle all discriminatory regimes. It results from the combination of information embodied in UNCTAD-TRAINS source files as well as AMAD database, and in WTO member countries’ notifications regarding their anti-dumping regimes. This information is combined with trade data from UNSD-COMTRADE.

MacMaps-GTAP5 measures the market access into 137 countries for 223 exporting countries at the tariff line level for the year 1999. It can be aggregated to any geographic or sectoral classification using a procedure that minimizes the endogeneity bias while accounting for the importance of a detailed products breakdown in international trade.

The content of the paper is as follows. Section 1 deals with the methodological issues at stake. Section 2 details the sources and how they are handled. The aggregation procedure, noticeably the principles of reference groups and the structure of the output files, are detailed in Section 3. Results obtained in the GTAP 5 sectoral nomenclature are considered in Section with national examples e.g. the U.S., India and Chile, and the bilateral results in the EU case.

Resource Details (Export Citation) GTAP Keywords
Category: 2002 Conference Paper
Status: Published
By/In: Presented at the 5th Annual Conference on Global Economic Analysis, Taipei, Taiwan
Date: 2002
Created: Bouët, A. (4/30/2002)
Updated: Bacou, M. (7/2/2002)
Visits: 4,713
- Calibration and parameter estimation

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