Conclusions
Abstract Using household survey data for 54 low- and middle-income countries harmonized with trade and tariff data, this book offers a quantitative assessment of the income gains and inequality costs of trade liberalization and the potential trade-off between them. The material in this book summarizes the results in our companion papers, which we complement with additional results as well as with more details and discussions.
- Research Article
9
- 10.1111/1468-2478.00243
- Dec 1, 2002
- International Studies Quarterly
Do free trade agreements (FTAs) help or hinder multilateral trade liberalization? This question, though much debated, remains unanswered because (1) there has been scant attention to the conditions under which FTAs have either effect, and (2) extant hypotheses have not been rigorously tested. In this article I identify conditions under which FTAs help and hinder broader trade liberalization: they do the former when members' intra- and extra-FTA comparative advantages are similar and the latter when the opposite is true. I test these hypotheses using trade, output, and tariff data from the European Free Trade Association. The trade data indicate that members with similar intra- and extra-FTA comparative advantages liberalized trade more rapidly than those with dissimilar comparative advantages. The output and tariff data suggest that these differences among members reflect hypothesized economic and political processes. My research implies that scholars should abandon universalistic arguments concerning the effects of regional arrangements and devote more attention to the conditions governing the relationship between regionalism and multilateralism.
- Research Article
5
- 10.21642/jgea.020202af
- Dec 30, 2017
- Journal of Global Economic Analysis
In this paper, I present a new multi-regional input-output (MRIO) database with tariffs differentiated by agent. To construct the MRIO, I apply the Broad Economic Categories (BEC) system of concordances to detailed trade and tariff data from the Tariff Analytical and Simulation Tool for Economists (TASTE) Database version 9 to obtain measures of trade and tariff revenues by end-use. I use this trade data by end use to expand the GTAP Database version 9.2, thus incorporating direct linkages from foreign suppliers to domestic producers, investors, and consumers. Further, the new database comprises distinct composite tariff rates for producers, investors, and consumers. I use a constrained optimization procedure to ensure MRIO trade flows aggregate to the original GTAP Database. Through illustrative simulations, I demonstrate the effect of (1) new cross-border trade linkages and (2) tariff escalation for trade policy analysis. I further demonstrate how the addition of differentiated tariffs in the MRIO enhances policy analysis beyond preceding versions of the MRIO.
- Single Report
447
- 10.3386/w9387
- Dec 1, 2002
This paper describes the updating of the NBER trade dataset, which now provides U.S. import and export values to the year 2001, disaggregated by Harmonized System (HS), Standard International Trade Classification (SITC), and the U.S. Standard Industrial Classification (SIC) categories.In addition, U.S. tariff data at the HS level have been added for the years 1989-2001.Earlier CD-ROMs distributed by the NBER described data on U.S. imports and exports from 1972-1994, and these values have been slightly modified for 1989-1994 and then updated to 2001.Together with the earlier data, there are now 30 years of disaggregate U.S.
- Conference Article
- 10.2991/icetis-13.2013.84
- Jan 1, 2013
The main purpose of this paper is to discuss how to verify the case analysis of the typical problems in international trade by modern computer software Stata in practical teaching class of international trade in the category of economics. Study on tariff and market power is taken as examples to discuss the empirical study of tariff. Based on literature written by Christian Broda, Nuno Limao and David E.
- Research Article
4
- 10.1111/twec.12634
- Mar 8, 2018
- The World Economy
In this paper, we examine the hypothesis that anti‐dumping actions may contribute to trade liberalisation by serving as a “safety valve” for protection‐seeking pressures. Using microlevel trade and tariff data at theHS8‐digit level for the European Union, we investigate whether the use of anti‐dumping measures has acted as a catalyst in subsequent multilateral tariff negotiations. Our findings suggest that anti‐dumping policies may have reduced the resistance of domestic protectionist forces towards major tariff reforms, as they show significantly larger tariff cuts for products previously involved in an anti‐dumping investigation.
- Research Article
425
- 10.1162/rest.89.3.416
- Jan 1, 2005
- Review of Economics and Statistics
This paper identifies NAFTA's effects on trade volumes and prices using detailed trade and tariff data. It identifies demand elasticities from the additional wedges driven between consumption patterns in NAFTA versus non-NAFTA countries caused by tariff reductions. Supply elasticities are identified using tariffs as instruments for observed quantities. Analysis of worldwide trade data for 5,000 commodities shows that NAFTA had a substantial impact on international trade volumes, but a modest effect on prices and welfare. NAFTA increased North American output and prices in many highly protected sectors by driving out imports from nonmember countries.
- Single Report
88
- 10.3386/w11059
- Jan 1, 2005
This paper identifies the effects of preferential trade agreements on trade volumes and prices using detailed trade and tariff data. It identifies demand elasticities by developing a difference in differences based method that exploits the fact that the additional wedge driven between consumption patterns in a liberalizing versus a non-liberalizing country is directly related to the tariff reduction. Supply elasticities are identified by using tariffs as instruments for observed quantities. Analysis of world-wide trade data for 5,000 commodities shows that NAFTA and CUSFTA have had a substantial impact on international trade volumes, but a modest effect on prices and welfare. NAFTA and CUSFTA increased North American output and prices in many highly-protected sectors by driving out imports from non-member countries.
- Research Article
14
- 10.4102/ac.v6i1.99
- Dec 6, 2006
- Acta Commercii
Purpose: The aim of this paper is to assess and provide an overview of the magnitude of current agricultural trade patterns between South Africa and the five leading regional economic communities (REC's) in Africa. This paper also seeks to examine some of the constraints limiting greater intra-African agricultural trade. This is done in order to better understand the role South Africa currently plays and could potentially play in promoting intra-Africa trade. Design/Methodology/Approach: Trade flows between South Africa and the leading REC's are outlined and explained. Trade data and tariff data is sourced from available databases. Non-tariff barriers and other impediments to greater intra-African trade are examined with reference to available literature and discussions the authors have had with trade experts and policy makers.Findings: South Africa is the most active country in intra-Africa agricultural trade. However, it is a relationship defined predominantly on exports to Africa with a low level of imports. South Africa exports a diverse range of value added products whilst imports remain concentrated in commodities. Significant imbalances in agricultural trade between South Africa and the respective REC's continue to persist. Regional trade arrangements have fostered greater trade but significant obstacles to greater trade remain.Implications: African countries that do not invest in infrastructure and create a trade-enabling environment and diversify their production, limit their potential to the supply of one or two commodities thereby perpetuating the trend of huge trade imbalances in favour of South Africa.Originality/Value: This work provides a platform for assessing trade relationships and examining impediments to greater trade. It is also relevant in guiding future research on priority markets in Africa as export destinations and import suppliers in light of increasing regional integration initiatives and governments commitment to African development.
- Research Article
18
- 10.1177/0015732513504713
- Nov 1, 2013
- Foreign Trade Review
The ASEAN–India Free Trade Agreement (FTA) has brought opportunities as well as challenges to the Indian industry since it came into force on 1 January 2010. There is no clear-cut estimates about the gains which will come to India especially in the sectors of agriculture, plantation and fisheries. However, some of the sectors which are labour intensive or unorganized will be facing bigger challenges. This article attempts to examine the impact of FTA where the tariff is either reduced or eliminated on some of the agricultural products like fisheries, tea and coffee, which have been projected as sensitive for India. The commitment of India and ASEAN under the FTA is analyzed along with the trade and tariff data. While doing so the article looks at some of the empirical evidence to examine the impact of India’s unilateral tariff liberalization in the Post-Uruguay Round by taking into consideration India’s imports, domestic production, etc. These results are then extrapolated to examine the impact of tariff liberalization on the domestic economy in view of India’s commitment in the ASEAN–India FTA. The study is divided into three parts. The first part deals with the history of India–ASEAN relationship and highlights the features of India–ASEAN FTA. The second part does a case study of fisheries, tea and coffee with regard to FTA and likely impact on India. The final part gives a broad conclusion of the study. The study first looks at the bilateral trade data and then highlights the salient features of India–ASEAN FTA. It then reviews some of the literary works that have been carried out in this regard. The study thereafter looks at the historical trends of production, prices, trade values and tariffs on identified items at a national level as well as the items in India’s tariff liberalization programme (TLP). In the next section, while identifying the position, it also examines the position of these items in ASEAN’s TLP so as to assess whether Indian producers will get equal opportunities for preferential market access there or not. A comparison of the unit value price of Indian producers as well ASEAN members has been made to look at their respective competitiveness not only in the international markets but in each others’ market as well. The study gives its finding at the end summarizing the threats and the opportunities for Indian producers.
- Research Article
2
- 10.5604/01.3001.0013.5365
- Oct 17, 2019
- Annals of the Polish Association of Agricultural and Agribusiness Economists
The article is a contribution to the discussion on the anticipated consequences of the United Kingdom’s withdrawal from the European Union for Poland’s trade relations with this country, with particular emphasis on the likely impacts of a hard or no-deal Brexit on Polish exporters. Its aim is to provide readers with an understanding of how agri-food flows between Poland and the UK (especially Poland’s exports) could be affected once the UK departs the EU. The question is important considering that, in recent years, the UK has been the second biggest importer and a net importer of agricultural and food products from Poland. The study is based on trade data from the UN Comtrade Database and Poland’s Central Statistical Office, and on tariff data from the UK’s Department for International Trade. Taking into account the possible imposition of customs duties announced thus far by the British government on the import of agri-food products from third countries in the event of a no-trade agreement with the EU, the introduction of additional non-tariff barriers, as well as increased transactional (friction) costs and complexity of doing business with foreign partners, a hard Brexit would have serious implications for Poland’s fast growing agri-food exports to the UK. It would even lead to a collapse of some Polish supplies, particularly of meat and dairy commodities, to Great Britain. The loss of two-way preferences in trade now arising from participation in the EU single market will undermine the competitiveness of Polish producers on UK’s market both against British producers and lower cost exporters from outside the EU.
- Research Article
2
- 10.1515/jgd-2022-0023
- Dec 15, 2023
- Journal of Globalization and Development
How do tariffs impact gender inequality? Using harmonized household survey and tariff data from 54 low- and middle income countries, this paper shows that protectionism has an anti-female bias. On average, tariffs repress the real incomes of female headed households by 0.6 percentage points relative to that of male headed ones. Female headed households bear the brunt of tariffs because they derive a smaller share of their income from and spend a larger share of their budget on agricultural products, which are usually subject to high tariffs in developing countries. Consistent with this explanation, the anti-female bias is stronger in countries where female-headed households are underrepresented in agricultural production, are more reliant on remittances, and spend a comparatively larger share of their budgets on food than male-headed ones.
- Single Book
- 10.1596/1813-9450-9750
- Aug 17, 2021
How do tariffs impact gender inequality? Using harmonized household survey and tariff data from 54 low- and middle-income countries, this paper shows that protectionism has an anti-female bias. On average, tariffs repress the real incomes of female headed households by 0.6 percentage points relative to that of male headed ones. Female headed households bear the brunt of tariffs because they derive a smaller share of their income from and spend a larger share of their budget on agricultural products, which are usually subject to high tariffs in developing countries. Consistent with this explanation, the anti-female bias is stronger in countries where female-headed households are underrepresented in agricultural production, are more reliant on remittances, and spend a larger share of their budgets on food than male-headed ones.
- Research Article
12
- 10.1093/wber/lhaa005
- Mar 19, 2020
- The World Bank Economic Review
How do trade reforms impact households in different parts of the income distribution? This paper presents a new database, the Household Impacts of Tariffs data set, which contains harmonized household survey and tariff data for 54 low- and middle-income countries. The data cover highly disaggregated information on household budget and income shares for 53 agricultural products, wage labor income, non-farm enterprise sales and transfers, as well as spending on manufacturing and services. Using a stylized model of the first-order impacts of import tariffs on household real income, this paper quantifies the welfare implications of agricultural trade protection. On average, unilateral elimination of agricultural tariffs would increase household incomes by 2.50 percentage points. Import tariffs have highly heterogeneous effects across countries and within countries across households, consumers, and income earners; the average standard deviation of the gains from trade within a country is 1.01 percentage points.
- Single Book
16
- 10.1596/1813-9450-8825
- Apr 1, 2019
This paper characterizes the trade-off between the income gains and the inequality costs of trade using survey data for 54 developing countries. Tariff data on agricultural and manufacturing goods are combined with household survey data on detailed income and expenditure patterns to estimate the first-order effects of the elimination of import tariffs on household welfare. The paper assesses how these welfare effects vary across the distribution by estimating impacts on the consumption of traded goods, wage income, farm and non-farm family enterprise income, and government transfers. For each country, the income gains and the inequality costs of trade liberalization are quantified and the trade-offs between them are assessed using an Atkinson social welfare index. The analysis finds average income gains from import tariff liberalization in 45 countries and average income losses in nine countries. Across countries in the sample, the gains from trade are 1.9 percent of real household expenditure on average. We find overwhelming evidence of a trade-off between the income gains (losses) and the inequality costs (gains), which arise because trade tends to exacerbate income inequality: 45 countries face a trade-off, while only nine do not. The income gains typically more than offset the increase in inequality. In the majority of developing countries, the prevailing tariff structure thus induces sizable welfare losses.
- Research Article
60
- 10.1016/j.jinteco.2019.05.001
- May 17, 2019
- Journal of International Economics
This paper characterizes the trade-off between the income gains and the inequality costs of trade using survey data for 54 developing countries. Tariff data on agricultural and manufacturing goods are combined with household survey data on detailed income and expenditure patterns to estimate the first-order effects of the elimination of import tariffs on household welfare. The paper assesses how these welfare effects vary across the distribution by estimating impacts on the consumption of traded goods, wage income, farm and non-farm family enterprise income, and government transfers. For each country, the income gains and the inequality costs of trade liberalization are quantified and the trade-offs between them are assessed using an Atkinson social welfare index. The analysis finds average income gains from import tariff liberalization in 45 countries and average income losses in nine countries. Across countries in the sample, the gains from trade are 1.9% of real household expenditure on average. We find overwhelming evidence of a trade-off between the income gains (losses) and the inequality costs (gains), which arise because trade tends to exacerbate income inequality: 45 countries face a trade-off, while only nine do not. The income gains typically more than offset the increase in inequality. In the majority of developing countries, the prevailing tariff structure thus induces sizable welfare losses.