Are nontariff measures and tariffs substitutes? Some panel data evidence

Niu, Zhaohui and Milner, Chris and Gunessee, Saileshsingh and Liu, Chang (2020) Are nontariff measures and tariffs substitutes? Some panel data evidence. Review of International Economics, 28 (2). pp. 408-428. ISSN 0965-7576

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Abstract

Using new estimates of ad valorem equivalent of nontariff measures (NTMs) over time, this paper examines NTMs and tariffs’ relationship for a sample of 70 economies for 4,949 products at the 6‐digit harmonized system level over the period 2003–2015. A panel data methodology models the lagged adjustment of NTMs to tariffs, consistent with a causal relationship. Trade policy substitution is found when the models are estimated in both levels and changes; with this holding for both OECD and non‐OECD countries, but not for the agriculture sector in OECD countries. Overall, there is a fairly complete substitution between policy instruments in absolute terms.

Item Type: Article
Keywords: Non-tariff measures; tariffs; substitutes; complements; trade policy
Schools/Departments: University of Nottingham Ningbo China > Faculty of Business > Nottingham University Business School China
University of Nottingham Ningbo China > Faculty of Humanities and Social Sciences > School of Economics
Identification Number: https://doi.org/10.1111/roie.12457
Depositing User: Yu, Tiffany
Date Deposited: 11 Sep 2020 07:20
Last Modified: 11 Sep 2020 07:21
URI: http://eprints.nottingham.ac.uk/id/eprint/61866

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