Trade Barriers and Trade Flows across Countries and Industries / Jong-Wha Lee, Phillip Swagel.

Format:

Book

Author/Creator:

Lee, Jong-Wha.

Contributor:

National Bureau of Economic Research.

Swagel, Phillip.

Series:

Working Paper Series (National Bureau of Economic Research) no. w4799.

NBER working paper series no. w4799

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1994.

Summary:

We use disaggregated data on trade flows, production, and trade barriers for 41 countries in 1988 to examine the political and economic determinants of non-tariff barriers, as well as the impact of protection (both tariff and non-tariff) on trade flows. We use an econometric framework that allows for the simultaneous determination of trade barriers and trade flows. Our results are consistent with political-economy theories of the determinants of protection: even after accounting for industry-specific factors, nations tend to protect industries that are weak, in decline, and threatened by import competition. Countries also give more protection to large industries; these might be thought of as politically important. Nations use tariffs, non-tariff barriers, and exchange rate controls as complementary instruments of protection.

Notes:

Print version record

July 1994.