Effective Rates Of Protection Research Articles

A profile of trade protection in Egypt: an effective rate of protection approach adjusting for energy subsidies and non-tariff barriers

This study examines effective rates of protection (ERPs) in Egypt due to tariffs, non-tariff barriers (NTBs), and energy subsidies, and compares them with those of a decade ago. Two sources of cost-share information at different levels of aggregation are used: data on specific industries (four-digit ISIC code, 20 in the private and 17 in the public sector), and data on the inter-industry intermediate input costs from the latest available input–output matrix (2006/2007) with 23 aggregated sectors. Trade liberalization since late-1990s appears to have reduced protection, although some industries remain relatively highly protected due to tariff escalation, NTBs, and energy subsidies. Energy subsidies favor energy intensive sectors, of particular note the electricity sector. Energy subsidies also offset the dis-protection that results from intermediate input tariffs. The cement sector is notable, energy subsidies almost exactly offsetting the negative impacts of tariffs and indirect taxes. The fertilizer sector has zero nominal tariffs (benefiting agriculture) and so has a negative ERP due simply to tariffs on inputs; nevertheless, the sector has a high positive ERP due to energy subsidies. ERPs in the private sector have declined notably, and nominal rates of protection have declined generally. ERP dispersion across industries also fell over the decade, but there remains an unexpectedly high dispersion relative to that suggested by applied tariffs only due to the unequal impact of subsidies. Estimated tariff equivalents of NTBs are also highly dispersed.

Exploring the Policy Dimensions of Trade in Value-Added

Global Value Chains are a dominant feature of today’s global economy, yet their empirical analysis is still incipient. Building on a recent OECD-WTO database and the results of an on-going research program at WTO, the present essay contributes at filling this gap, after introducing the main concpts used for measuring trade in value-added. The effective protection on industries resulting from tariff duties is analysed from the particular perspective of the international fragmentation of international supply chains. The calculation of effective protection rates provides important insights on the impact of nominal protection on international competitiveness in a trade in tasks perspective. Using Exploratory Data Analysis, the paper identifies also typologies of value-added traders according to economic characteristics and trade policy options.

Thailand's Effective Rate of Protection on Wine

This paper examines Thailand’s wine industry and tariffs on wine and any intermediate inputs. This is achieved using firm-level data in computing the effective protection rate on wine within Thailand. Findings on the effective rate for the domestic wine industry are greater than the nominal tariff of 60 percent. In addition this research will provide a summation of the wine industry in Thailand and the usefulness the effective rate provides to the industry.

Reassessing Effective Protection Rates in a Trade in Tasks Perspective: Evolution of Trade Policy in 'Factory Asia'

With international trade moving from trade in (final) goods to trade in tasks, effective protection rates (EPRs) are back to the stage, allowing us to measure the overall protection of a product or sector by including the production structure and the origin of the inputs -domestic or imported. Input-output matrices are used in this paper to monitor the production structure of 10 Asian-Pacific countries between 1995 and 2005, and to calculate sectorial EPRs. The paper proposes a series of counter-factual simulation methods aimed at isolating the specific contribution of changes in tariff policies, in production structure or in real exchange rates. Working on international input-output matrices allowed also to compute and compare the average propagation length of a cost-push linked to a sudden change in tariff duties, identifying those sectors that are the most deeply interconnected, both in the intensity and in the length of their inter-industrial foreign relationships.

Effective rates of protection revisited for Indonesia

This paper calculates nominal and effective rates of protection for Indonesian tradables sectors in early 2008, and compares these figures with previous calculations for 1987 and 1995. Such a review is overdue. Many non-tariff barriers to imports and exports have been abolished, though new import restraints on rice and sugar are notable exceptions to this trend. Import tariffs have been lowered, particularly through regional preferential trade arrangements. We account for such arrangements in two different ways. Export taxes persist in certain natural resources sectors, but most rates have been reduced. We find that more than half of the effective support provided to tradable products sectors now comes from subsidies on fuels, fertiliser, electricity and liquefied petroleum gas, rather than from trade policies per se. Duty drawbacks and exemptions for exporters boost the effective rate of protection for tradables sectors overall by a small fraction of 1%, and for no input–output sector by more than 3%.

Economic integration and trade deficit: A case of Vietnam

This paper attempts to present a quantitative analysis in order to figure out the reasons of continuous increase of trade deficit in the last decade in Vietnam. After a long period of unceasing economic growth and macroeconomic stability, Vietnam has become one of the attractive investment destinations for many foreigner investors. However, the country starts to worry about its overall economic situation after overexciting the first half of 2007 when Vietnam officially joined the World Trade Organization (WTO) in January the same year. The study explains output multiplier and power of dispersion on import, based on structure of the economy through input - output tables published by General Statistical Office and the Leontief and Keynes’ theories, aiming at helping policy-makers and planners to prioritize the key sectors and appropriate structure for the Vietnam’s economy. The study also introduces a comparison between the power of dispersion on import and the effective rate of protection in order to have the most appropriate economic policy with respect to the WTO’s commitments. Key words: Vietnam, trade deficit, output multiplier, import multiplier, protection, input-output analysis.

Trade Liberalisation and its Impact on the Rice Sector of Sri Lanka

This paper examines the impact of trade intervention policies. The trade protection for the rice sector was estimated using both nominal and effective protection rates. These show positive protection to producers at the expense of consumers. Current analysis indicates that one rupee of resources is used to produce 56 cents worth of rice valued in foreign exchange. As trade is increasingly liberalised, protection will be eventually eliminated and rice farmers will be forced to produce rice at competitive prices. Consequently, the extent under rice is expected to decrease by 12 per cent and total production decreases by 16 per cent. Meanwhile demand for rice will increase as a result of the reduction in retail price. Overall welfare impacts reveal that it is a gain to the nation. However, the producers face welfare losses. Therefore concerted and simultaneous efforts are imperative to improve productivity growth and reduce the unit cost of production in order to improve the competitiveness of the rice sector so that it can compete with the rest of the world. DOI: <a href="http://dx.doi.org/10.4038/sjae.v3i0.3494">http://dx.doi.org/10.4038/sjae.v3i0.3494</a> <em>SJAE </em>2000; 3(1): 143-154

Immunoadjuvant activities of a recombinant chicken IL-12 in chickens vaccinated with Newcastle disease virus recombinant HN protein

Recombinant fowlpox virus (rFPV/HN) expressing Newcastle disease virus (NDV) HN gene and rFPV/HN/chIL-12 co-expressing chicken IL-12 (chIL-12) and HN (rHN/chIL-12) genes have been characterized. rHN/chIL-12 or rchIL-12, expressed by our previous construct rFPV/chIL-12, co-administered with rHN was assessed for adjuvant activities of chIL-12. Chickens were vaccinated with various amounts of rHN/chIL-12 mixed with mineral oil (MO), intramuscularly. Levels of hemagglutination-inhibition (HI) antibody production depended on the concentration of the injected rHN or rHN/chIL-12. The lower HI antibody titers were obtained in chicken groups rHN/chIL-12/7-rHN/chIL-12/9, receiving 60 ng rHN/8 ng chIL-12 with MO, 30 ng rHN/4 ng chIL-12 with MO or 15 ng rHN/2 ng chIL-12 with MO, respectively, compared to those in chicken groups rHN/7-rHN/9, receiving rHN with MO alone. However, chickens in group rHN/chIL-12/7 or rHN/chIL-12/8 and rHN with MO alone showed the same effective protection. Chicken group rHN/chIL-12/9 was even more protective than that in group rHN/9. When rchIL-12 was co-injected with 15 ng rHN plus MO, chickens produced low levels of HI antibody titers; while higher levels of IFN-γ production and an effective protection rate (83%) were obtained. On the other hand, low levels of IFN-γ production and low protection response (50%) were obtained in chickens injected with rHN with MO alone. Taken together, when the concentration of rHN decreased to certain levels, rchIL-12 reduced HI antibody production. The increase in the induction of IFN-γ production might suggest the enhancement of the cell-mediated immunity which conferred the protection from the NDV challenge.

Measuring Protection in Indian Industries

Liberalization has been a key ingredient of recent economic policies in India and elsewhere, based upon the notion that removing restrictions on domestic economic activity as well as on the trade relations with other countries has a beneficial impact on the economy. Studies attempting to measure tariff and non-tariff barriers have shown gradual decline in tariff and non-tariff barriers [World Bank (1989), Aksoy &amp; Ettori (1992), Goldar and Hasheem (1992), Gang and Pandey (1998), Hasheem (2001), Pandey (2004)]. In this paper, the authors have made an attempt to quantify the trade barriers operating in Indian industry in order to understand whether protection levels actually decrease following trade liberalization. The authors have also computed several measures of trade liberalization covering tariff barriers � effective rate of protection and import penetration rates under different phases of trade reforms.

Lao economic policies and effective rates of protection

The Lao People's Democratic Republic (PDR) has embarked on the process of accession to the World Trade Organization. Part of that process involves compilation of information on the country's trade and related policies, and development of analytical frameworks that Lao and other researchers can use to understand the effects of these policies. This paper calculates effective rates of protection for tradable-good sectors included in the Lao input–output table. In the process, it surveys and models import tariffs and export taxes, non-tariff trade measures, relevant tax and investment policies, and implicit taxes and subsidies in water and electricity rates.

Measuring Agricultural Policy Bias: General Equilibrium Analysis of Fifteen Developing Countries

Measurement is a key issue in the literature on price incentive bias induced by trade policy. We introduce a general equilibrium measure of the relative effective rate of protection, which generalizes earlier protection measures. For our fifteen sample countries, results indicate that the agricultural price incentive bias generally perceived to exist during the 1980s was largely eliminated during the 1990s. Results also demonstrate that general equilibrium effects and country‐specific characteristics are crucial for determining the sign and magnitude of agricultural bias. Our comprehensive protection measure is therefore uniquely suited to capture the full impact of trade policies on relative agricultural price incentives.

Trade Liberalization and Employment Performance of Textile and Clothing Industry in Tanzania

The objective of this study is to investigate the effect of trade liberalization on employment performance of textile industry in Tanzania. The basic issue of concern is that the implementation of trade liberalization has differential impact on employment and wage in many African countries. In addressing this issue as well as achieving the objective, econometric models of employment and wage are estimated using co-integration method of analysis. The analysis shows that effective rate of protection and export intensity have an insignificant positive impact on demand for labour, but import penetration has a significant negative impact on employment. Also, only import penetration has a significant negative impact on wage. The impact of import penetration is larger than that of export orientation, as the increase in import competition leads to a decline in labour demand. These findings point to the fact that to make trade liberalization to be effectual in Tanzania, the process of trade reform needs to be gradual and also need to be strengthened with appropriate institutional support.

Was It Prices, Productivity or Policy? Latin American Industrialisation after 1870

AbstractThe new trade data used here document the significance of industrialisation in Argentina, Brazil, Chile and Mexico after 1870. By 1910 Brazil and Mexico, in particular, led most of the poor periphery in Asia, Africa and the Middle East. While some of this impressive industrialisation was due to fast productivity growth in manufacturing, perhaps yielding some catch-up on their competitors in the United States and Europe, this article argues that there were even more powerful forces at work. Much of the industrialisation that occurred in Latin America was due to a cessation in the seven-decade rise in its net barter terms of trade, trends that reversed the deindustrialisation and ‘Dutch Disease’ forces that had dominated Latin America for almost a century. Equally important for Brazil and Mexico was favourable policy in the form of higher effective rates of protection for manufacturing, and a depreciation of the real exchange rate. These policies were missing in Argentina and Chile, and industrialisation suffered there as a consequence. Changing market conditions and policies seem to have been more important than changing fundamentals in accounting for Latin American industrialisation after 1870.

Le tarif extérieur canadien et la protection de l’activité manufacturière québécoise : nouveaux résultats (1966-1977)

Using the 1966 and 1973 (74) Quebec input-output tables we try to identify the sources of variations in the effective protection rates of 169 manufacturing activities between these two periods, namely, changes in nominal tariffs, input-output structures and international export shares. Our results suggest that, between 1969 and 1974, there were a certain number of activities where entrepreneurs used relatively more of the intermediate inputs which had become cheaper (technical substitution effect). However, most of the changes in the effective protection rate values remain explained by changes in the external nominal tariff. The impact of changes in international export shares is itself negligible. Finally the study provides the effective protection rates of the 169 activities for 1977 (given the 1973-74) input-output structure.

Impact of Tariffs on Industries and Prices in Finland during the Interwar Period

While there has been some analysis of the role of tariffs in Finland during the interwar period, quantitative estimates of the benefits and drawbacks are quite rare. This article examines the impact of tariffs on industries value added and prices during the interwar period calculating the effective rate of protection as well as using an input-output price model. The basis for both calculations is an input-output table describing the Finnish economy in 1928. It is argued that the Finnish tariff policy was basically a contra-price-fall policy, directed merely towards agricultural and food products. The focus was on securing the domestic supply of food products. The results also suggest that tariffs did not provide sufficient protection to new industries – contradicting the infant industry argument repeated in some of the earlier studies.

Passthrough of Exchange Rate and Tariffs into Import Prices of India: Currency Depreciation versus Import Liberalization*

AbstractThis paper examines the extent of passthrough of exchange rate and tariff changes into import prices using sectoral panel data (at the two‐digit SITC level) for the post‐reform period in India (1990–2001). After having controlled for unobserved effects that might have an impact on the import prices by using sector dummies, we find that on average exchange rate passthrough (ERPT) is a dominant effect compared to tariff rate passthrough (TRPT) in explaining changes in India's import prices. The sectoral panel results suggest that the passthrough of exchange rates and tariff rates varies across products. ERPT into import prices is significant in 12 industries, whereas TRPT is significant only in six industries, with full passthrough. However, ERPT is incomplete only in four industries, but TRPT is incomplete in 36 industries, which means that firms exporting to India more frequently adopt strategies to maintain their market share against tariffs than against exchange rate changes. The sectoral differences in passthrough seem to be related to the sector's share in total imports and the sector's effective protection rate. Hence, India's relatively high levels of protection have an impact on the behavior of foreign exporters.

Pass-Through of Exchange Rate and Tariffs into Import Prices of India: Currency Depreciation versus Import Liberalisation

This paper examines the extent of pass-through of exchange rate and tariff changes into import prices using sectoral panel data (at the 2-digit SITC level) for the post-reform period in India (1990-2001). After having controlled for unobserved effects that might have an impact on the import prices by using sector dummies, we find that on average exchange rate pass-through (ERPT) is a dominant effect compared to tariff rate pass-through (TRPT) in explaining changes in India's import prices. The sectoral panel results suggest that the pass-through of exchange rates and tariff rates varies across products. ERPT into import prices is significant in 12 industries, whereas TRPT is significant only in 6 industries, with full pass-through. However, ERPT is incomplete only in 4 industries, but TRPT is incomplete in 36 industries, which means that firms exporting to India more frequently adopt strategies to maintain their market share against tariffs than against exchange rate changes. The sectoral differences in pass-through seem to be related to the sector's share in total imports and the sector's effective protection rate. Hence India's relatively high levels of protection have an impact on the behaviour of foreign exporters.

ANALISIS DAYA SAING KOMODITI UNGGULAN SEKTOR PERKEBUNAN DI SULAWESI UTARA

ABSTRACT Mandei, J.R. et. al. 2008. Competitiveness Analysis Of Plantation Strategic Sector At North Sulawesi). Eugenia 14 (3) : 361-374. The economic changing of Indonesia, especially at North Sulawesi was fast and not stable in some year latest involve some change. Rupiah fluctuation concerning US dollar and increasing price of goods, include price of production factor influence production cost, become the reason to doing a research about competitiveness of plantation commodity in North Sulawesi. The objectives of the research is to know the competitiveness of plantation commodity in North Sulawesi. The analiysis was of four commodities, that is Coconut, Vanilla, Nutmeg and Clove. Those commodities are the straregic commodities in North Sulawesi. The method used in this analysis is Domestic Resource Cost (DRC) and Effective Rate of Protection (ERP). The research was done from Juli to Agustus. The data used in the research consisted of primary and secondary data. Secondary data were obtained from local government institutions, while primary data were collected from the direct interviews with the farmers on the site. The research indicated that the farm system of Coconut, Vanilla, Nutmeg and Clove cultivated in North Sulawesi Area brought advantages both in private and social aspect. The result showed that profit value was bigger than zero, meaning that the production those commodities in this area were feasible to be increased, given the land was available and there were no alternative commodities that were more profitable. The plantation commodities in North Sulawesi had competitive and comparative advantage. The implication of ths fact showed that those commodities were feasible to be produced due to the efficiency in using the domestic resources and those commodities were feasible to export. Coefisien Domestic Resource Cost (DRC) for Coconut commodity (0.321), Vanilla (0.343), Nutmeg (0.195), and Clove (0.701) was below one and smaller than shadow price, indacated that those commodities were efficient in using domestic resource and had comparative advantage. Effective Rate of Protection (ERP) for Coconut commodity (-0.679), Vanilla (-0.657), Nutmeg (-0.805) and Clove (-0.229) was negative, indicated that those commodity were not needed effective protection and those commodity were privately profitable. Keywords : vanilla, coconut

Service Trade Liberalization as a Handmaiden of Competitiveness in Manufacturing: An Industrialized or Developing Country Issue?

This paper discusses the issue whether developing countries forego chances in world manufactured markets by protecting intermediate services against market entry of new suppliers. By scanning the empirical literature on effective rates of protection (ERP), the evidence is supportive. Yet, it seems more the indirect effect via expanding the service sector in total through liberalization and deregulation than the direct effect of lowering ERP in intermediate service industries for downstream manufacturing industries which is relevant. Developed countries on the other hand enjoy a much lower level of protection in important intermediate services like banking and telecom and thus these industries can be instrumental to help downstream manufacturing industries in adjustment and restructuring. It is argued that especially in the EU competition in intermediate services will further rise due to various EU-policy rooted factors. As a result, protection rates of services in individual EU countries will converge.

DETERMINANTS OF PROTECTION IN THAI MANUFACTURING

This paper examines determinants of effective rates of protection (ERP) and nominal rates of protection (NRP) in Thai manufacturing. Our results indicate political bargains in Thailand are struck over ERP rather than NRP. Moreover, protection tends to be granted to industries that have a high level of industry concentration and are experiencing increased import competition. The relatively open foreign investment policy regime in Thailand means that policymakers are more responsive to requests made by foreign investors, including requests for tariff cuts. The decision to grant protection to Thai industries is justified on the basis of the ability of industries to generate employment and backward linkage to the rest of the economy.