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GTAP Resource #2346

"Which tariff aggregator for trade modelers?"
by Bouët, Antoine

For many years the aggregation of tariffs is a hotly debated issue. From relatively simple aggregation schemes (national imports, world imports, imports of a reference group) to complex schemes (aggregation systems based on Trade Restrictiveness Index, on Mercantilist Trade Restrictiveness Index – MTRI-) the economic literature has been prolific and innovative, but has not yet provided satisfactory and operational conclusions.
The objective of this paper is to examine the virtues and drawbacks of different weighing schemes and draw some clear-cut conclusions for trade modelers. After the exposition of theoretical foundations and a review of the literature, an implementation of different weighing schemes (national imports, world imports, imports of a reference group, MTRI -based scheme) is carried out in the MAcMAP_HS6 database which describes world protection in 2004. The differentiated measurement of protection at various levels is examined (by reporter, by partner, by product, by reporter and partner…).
Then we utilize a standard geographic and product decomposition and model full trade liberalization with the MIRAGE model, with measurement of protection based on alternative weighing scheme. Comparisons are done in terms of welfare and trade impact.

Resource Details (Export Citation) GTAP Keywords
Category: 2007 Conference Paper
Status: Published
By/In: Presented at the 10th Annual Conference on Global Economic Analysis, Purdue University, USA
Date: 2009
Created: Bouët, A. (4/13/2007)
Updated: Batta, G. (6/11/2007)
Visits: 3,604
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