Diakantoni, Antonia and Escaith, Hubert (2012): Reassessing effective protection rates in a trade in tasks perspective: Evolution of trade policy in "Factory Asia".
Download (985kB) | Preview
International trade moved from "trade in goods" to "trade in tasks" and effective protection rates (EPRs) are back to the analytical stage. They measure the overall protection that sectoral value-added is receiving from applied tariffs. The paper calculates sectorial EPRs for 10 Asian-Pacific countries between 1995 and 2005 and proposes simple methods aimed at isolating the specific contribution of changes in tariff policies, in production structure or in real exchange rates. International input-output matrices allowed also to compute and compare the average propagation length of a shock linked to a sudden change in tariff duties, identifying sectors most deeply interconnected.
|Item Type:||MPRA Paper|
|Original Title:||Reassessing effective protection rates in a trade in tasks perspective: Evolution of trade policy in "Factory Asia"|
|Keywords:||Tariff; Input-Output; Effective Protection; Trade in Value Added; International Outsourcing|
|Subjects:||F - International Economics > F1 - Trade > F13 - Trade Policy ; International Trade Organizations
O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence
F - International Economics > F2 - International Factor Movements and International Business > F23 - Multinational Firms ; International Business
F - International Economics > F1 - Trade > F17 - Trade Forecasting and Simulation
C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C15 - Statistical Simulation Methods: General
C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C67 - Input-Output Models
O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O14 - Industrialization ; Manufacturing and Service Industries ; Choice of Technology
|Depositing User:||Hubert Escaith|
|Date Deposited:||05 Oct 2012 15:53|
|Last Modified:||24 Feb 2016 11:24|
Balassa, B. (1965) 'Tariff Protection in Industrial Countries: An Evaluation' The Journal of Political Economy, vol LXXIII, pp. 573-594, December.
Broda, Ch, N. Limão and D. Weinstein (2006), 'Optimal Tariffs: The Evidence' NBER Working Paper No. 12033.
Cipollina, M and L. Salvatici (2007) 'Measuring protection: mission impossible?' TradeAG Working Paper 06/07 (http://tradeag.vitamib.com).
Corden, W.M (1966) 'The structure of a tariff system and the effective protection rate' The Journal of Political Economy, vol LXXIV, pp. 221-237, June.
Diakantoni, A. and H. Escaith (2009) 'Mapping the tariff waters' WTO Staff Working Paper ERSD-2009-13.
Dietzenbacher, E. and Romero, I. (2007) 'Production chains in an interregional framework: Identification by means of average propagations lengths' International Regional Science Review, 30: 362-383.
Escaith, H and F. Gonguet (2011) 'International Supply Chains Trade as Real Transmission Channels of Financial Shocks' Journal of Financial Transformation, 31st edition, pp 83-97.
Flatters, F. (2003) 'Measuring the Impacts of Trade Policies: Effective Rates of Protection' mimeo.
Greenaway, D. and C. Milner (2003) 'Effective Protection, Policy Appraisal and Trade Policy Reform' The World Economy Vol 6, pp. 441–456.
Grossman, G. and E. Rossi-Hansberg (2006) 'The rise of offshoring: it's not wine for cloth anymore' Proceedings, Federal Reserve Bank of Kansas City.
Hertwich1 E. and GP. Peters (2010) 'Multiregional Input-Output Database' OPEN:EU Technical Document.
IDE-JETRO (2006) 'How to make Asian Input-Output Tables'. Inomata, S. (2008) 'A New Measurement for International Fragmentation of the Production Process: An International Input-Output Approach' IDE Discussion Papers No.175.
Koopman, R., W. Powers, Z. Wang and S.-J. Wei (2011) 'Give credit to where credit is due: tracing value added in global production chains' NBER Working Papers Series 16426, revised September.
Krugman, P (1979) 'Increasing returns, monopolistic competition, and international trade'. Journal of International Economics 9, pp. 469–79.
Lamy, P. (2010) Inaugural speech at the Conference 'Globalization of the Industrial Production Chains and Measuring International Trade in Value Added' WTO-French Senate, Paris.
OECD-WTO (2012) 'Trade in value-added: concepts, methodologies and challenges' e-document in 'Made in the World' website.
Pearson, S., C. Gotsch, and S. Bahri (2003) 'Applications of the Policy Analysis Matrix'.
Rauch, J (1999) 'Networks versus markets in international trade' Journal of International Economics 48, pp. (1999) 7–35].
Stehrer, R. (2012) ‘Trade in Value Added and the Value Added in Trade’, WIOD Working Paper 8.
WTO and IDE-JETRO (2011) ‘Trade patterns and global value chains in East Asia: From trade in goods to trade in tasks', Geneva.
WTO 'Integrated Data Base' (online database)
Yi, K-M (1999) 'Can Vertical Specialization Explain the Growth of World Trade?' International Research, Federal Reserve Bank of New York (revised 2001).