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GTAP Resource #5893

"PRICE AND QUANTITY EFFECTS OF NON-TARIFF MEASURES: EXPLORING CGE OPTIONS WITH OECD METRO"
by Arriola, Christine, Julien Gourdon, Susan Stone and Frank van Tongeren


Abstract
In the last decade, non-tariff measures (NTMs) have been the object of substantial academic and policy attention. In particular policy makers and economists have turned their attention to the role played by non-tariff methods of protection. More recently, research has been looking into various types of regulatory compliance costs impacting on international trade – and ways to reducing them. To support the negotiations needed to address trade impacts of NTMs, it is important to identify those measures that merely raise trade costs or create rents, from those that also create a positive benefit by addressing a regulatory problem. The diverse and complex nature of NTMs makes their quantification within a computable general equilbirum (CGE) framework both necessary and challenging.


In order to disentangle the different forms and objectives of NTMs, this research distinguishes “non-technical” and technical measures, the latter type typically falling in to the SPS and TBT categories. Estimated price and quantity effects of these two types of NTMs are used to disentangle demand-shifting effects from pure trade costs. This opens the way to identifying possible trade-enhancing effects of regulations (and their concomitant NTMs) that come from reducing information asymmetries and strengthening consumer confidence in imported products. These estimates are then applied in a CGE model where the different impacts on costs and utility are assessed.




Resource Details (Export Citation) GTAP Keywords
Category: 2019 Conference Paper
Status: Published
By/In: Presented at the 22nd Annual Conference on Global Economic Analysis, Warsaw, Poland
Date: 2019
Version:
Created: Arriola, C. (4/16/2019)
Updated: Arriola, C. (4/16/2019)
Visits: 803
- Calibration and parameter estimation
- Non-Tariff barriers
- Non-Tariff measures in services
- Not Applicable


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