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Domestic distortions and international trade

Anderson, J. and Neary, J. P. (1993) Domestic distortions and international trade. CEPDP (179). London School of Economics and Political Science. Centre for Economic Performance, London, UK.

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Abstract

In this paper, we investigate 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 non-traded goods and factors of production and illustrates its operationality with an application to liberalisation in Mexican agriculture. We conclude that our Index has considerable potential in empirical work and as an aid to trade negotiations.

Item Type: Monograph (Discussion Paper)
Official URL: http://cep.lse.ac.uk
Additional Information: © 1993 the authors
Divisions: Centre for Economic Performance
Subjects: H Social Sciences > HF Commerce
Date Deposited: 19 Aug 2008 08:46
Last Modified: 11 Dec 2024 18:19
URI: http://eprints.lse.ac.uk/id/eprint/20926

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