Reassessing effective protection rates in a trade in tasks perspective: Evolution of trade policy in "Factory Asia"

Diakantoni, Antonia and Escaith, Hubert (2012): Reassessing effective protection rates in a trade in tasks perspective: Evolution of trade policy in "Factory Asia".

Abstract

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
• Language: English
• 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

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