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Domestic distortions and international trade

Abstract:

In this paper, we develop 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 nontraded goods and factors of production and illustrate its operationality with an application to liberalisation in Mexican agriculture. ...

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Publication status:
Published
Peer review status:
Peer reviewed

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Institution:
Boston College
Role:
Author
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Institution:
World Bank
Role:
Author
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Institution:
University of Oxford
Division:
SSD
Department:
Economics
Research group:
Industrial Economics
Oxford college:
Merton College
Role:
Author

Contributors

Publisher:
Blackwell Publishing Publisher's website
Journal:
International Economic Review
Volume:
36
Issue:
1
Pages:
139-157
Publication date:
1995-02-01
ISSN:
0020-6598
Language:
English
Subjects:
UUID:
uuid:5898b50d-1cef-478e-a949-73ac22b98c2d
Local pid:
ora:2147
Deposit date:
2008-07-04

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