GTAP Resources: Resource Display
| GTAP Resource #5872 |
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"New global estimates of bilateral AVEs of NTMs: Application to NTM harmonization in Asia-Pacific" by Kravchenko, Alexey, Chorthip Utoktham, Badri Narayanan and Yann Duval Abstract Estimation of ad-valorem-equivalents (AVEs) of non-tariff measures (NTMs) are generally conducted using one of two approaches: price-based or quantity-based. This study uses a price-based approach to estimate the effect of different types of NTMs on price of internationally traded products, i.e. derives estimates of AVEs of NTMs. Using the derived AVE estimates, bilateral and GTAP sector-specific AVEs of NTMs are obtained by aggregating the estimated HS six-digit level AVEs using HS-GTAP sector concordance and HS six-digit level bilateral trade flows as weights. Next, the AVEs are introduced into the standard GTAP model by shocking ‘ams’ variable. This approach essentially assumes that NTMs are “shadow” tariffs equivalent to tariffs in the GTAP database, and by adding them to the existing tariffs the costs of NTMs are explicitly integrated into the model. While this is but one of many approaches of modelling NTMs in GTAP, the parsimonious nature of this method allows relatively simple approach to model NTM policies. Both, the model of estimating AVEs and the method of incorporating them into GTAP are sometimes contentious issues with many alternatives. The main goal of this paper is to provide a replicable, open source code for NTMs' AVEs estimation and integration of estimates in the GTAP model, that can be altered based on users' assumptions, levels of aggregation or particular research needs. |
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- Non-Tariff barriers - Asia (East) - Asia (South-Central) - Asia (Southeast) |
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If you have trouble accessing any of the attachments below due to disability, please contact the authors listed above.
Public Access  GTAP Resource 5872 (435.8 KB) Replicated: 0 time(s)Restricted Access No documents have been attached. Special Instructions Please do not cite - working version |
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Last Modified: 9/15/2023 1:05:45 PM
