Trade in tasks, tariff policy and effective protection rates

Diakantoni, Antonia and Escaith, Hubert (2014): Trade in tasks, tariff policy and effective protection rates.

Abstract

With the rise of global value chains, effective protection rates (EPRs) provide important insights on the impact of nominal tariffs on the competitiveness of industries. Building on the results of the OECD-WTO Trade in Value-Added TiVA database, the paper analyses the evolution of EPRs in about 50 developed and developing countries from 1995 to 2008. The paper reviews also the role of preferential agreements on effective protection as well as the impact of tariffs on the production costs of services. A final chapter is dedicated to the underlying patterns that may explain those EPR profiles.

• Item Type: MPRA Paper
• Language: English
• Keywords: Tariff; Effective Protection; Trade in Value Added; International Outsourcing; Competitiveness
• Subjects: C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C38 - Classification Methods ; Cluster Analysis ; Principal Components ; Factor Models; C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C67 - Input-Output Models; D - Microeconomics > D2 - Production and Organizations > D24 - Production ; Cost ; Capital ; Capital, Total Factor, and Multifactor Productivity ; Capacity; F - International Economics > F1 - Trade > F13 - Trade Policy ; International Trade Organizations; F - International Economics > F2 - International Factor Movements and International Business > F23 - Multinational Firms ; International Business; F - International Economics > F6 - Economic Impacts of Globalization > F60 - General; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O19 - International Linkages to Development ; Role of International Organizations

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