ANALYSIS OF THE IMPACT OF NON-TARIFF REGULATION MEASURES ON INTERNATIONAL TRADE INDICATORS: METHODICAL ASPECT
Abstract
The article is devoted to topical issues of the use of non-tariff measures in modern international trade, which significantly impede the movement of goods and services between countries, reducing the effectiveness of mutually beneficial international economic cooperation, hindering the development and cooperation of technological industries. The benefits of participants in international economic relations from the elimination of obstacles to mutual trade are confirmed by many years of international experience. The features, advantages and disadvantages of the main methodological approaches to assessing the impact of non-tariff regulation measures on international trade indicators are considered: the method of frequency analysis, the method for assessing the price difference and the associated method for assessing the tariff equivalent, the method for calculating price changes due to quantitative changes in the volume of imports, methods of index analysis and econometric estimates. It is proved that research on the impact of non-tariff barriers focuses on determining such indicators of international trade as the share of imports (in value or number of commodity items), for which non-tariff regulation measures are applied; tariff equivalents of non-tariff measures; change in the volume of exports or imports under the influence of non-tariff measures; change in terms of trade under the influence of non-tariff measures, etc. It was found that all these methods have both strengths and weaknesses related to data availability, calculation and evaluation mechanisms, reliability and relevance of the results. It is substantiated that the main methodological approaches to assessing the impact of non-tariff measures on the indicators of international trade that have been analyzed, provide to some extent an assessment of the level and intensity of these measures for exporters. It is concluded that the advantages and disadvantages characteristic of each of the considered methods necessitate the choice of an appropriate technique, depending on the objectives of the study and the available data.
References
Balassa, B., Balassa, C. (1984). Industrial Protection in the Developed Countries, The World Economy, vol. 7, no. 2, 179-196. URL: https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1467-9701.1984.tb00268.x
Baldwin, R. E. (1972). Non-tariff Distortions of International Trade, The Economic Journal 82, no. 325, 265–266. DOI: https://doi.org/10.2307/2230243
Ball, R. J., Linnemann, H. (1967). An Econometric Study of International Trade Flows, The Economic Journal 77, no. 306, 366–368. DOI: https://doi.org/10.2307/2229319
Basu, S.R., Kuwahara, H., Dumesnil, F. (2012). Evolution of Non-Tariff Measures: Emerging Cases from Selected Developing Countries. Policy Issues in International Trade and Commodities. Study Series. No. 52. New York and Geneva. URL: https://digitallibrary.un.org/record/743678
Berden, K. G., Francois, J., Thelle, M., Wymenga, P., Tamminen, S. (2009). NonTariff Measures in EU-US Trade and Investment: an Economic Analisys: Final Report for the European Commission. Rotterdam, ECORYS Nederland BV. URL: https://www.gtap.agecon.purdue.edu/resources/download/5177.pdf
Bergstrand, Jeffrey H. (1985). The Gravity Equation in International Trade: Some Microeconomic Foundations and Empirical Evidence. The Review of Economics and Statistics 67, no. 3, 474–81. DOI: https://doi.org/10.2307/1925976
Bhagwati, Jagdish N., and T. N. Srinivasan. (1980). Revenue Seeking: A Generalization of the Theory of Tariffs. Journal of Political Economy 88, no. 6, 1069–87. URL: http://www.jstor.org/stable/1831156
Byrne, S., Rice, J. (2018). Non-Tariff Barriers and Goods Trade: a Brexit Impact Analysis, Research Technical Papers, no. 6. Central Bank of Ireland. URL: https://www.centralbank.ie/docs/default-source/publications/research-technical-papers/06rt18-non-tarriff-barriers-and-goods-trade-a-brexit-impact-analysis-(byrne-and-rice).pdf?sfvrsn=4
Dean, J. M., Signoret, J. E., Feinberg, R. M., Ludema, R. D., Ferrantino, M. J. (2009). Estimating the Price Effects of Non-Tariff Barriers, The B.E. Journal of Economic Analysis & Policy 1, De Gruyter, vol. 9, 1–41. URL: https://www.usitc.gov/publications/332/EC200606Ar.pdf
Deardorff, A., Stern, R. (1997). Measurement of Non-Tariff Barriers. OECD Economics Department Working Papers. No. 179. ECD Publishing, Paris. URL: https://econpapers.repec.org/scripts/showcites.pf?h=repec:oec:ecoaaa:179-en
El-Agraa, Ali M., and Anthony J. Jones. (2008). Macroeconomics of Regional Integration: Withdrawal from a Customs Union. Journal of Economic Integration 23, no. 1, 75–90. URL: http://www.jstor.org/stable/23001112
Ferrantino, M. (2006). Quantifying the Trade and Economic Effects of Non-Tariff Measures, OECD Trade Policy Papers, No. 28. OECD Publishing, Paris. URL: http://dx.doi.org/10.1787/837654407568
Gourdon J. (2014). CEPII NTM–MAP: a Tool for Assessing the Economic Impact of Non–Tariff Measures, CEPII Working Paper, December. URL: http://www.cepii.fr/pdf_pub/wp/2014/wp2014-24.pdf
Hoekman, B., Nicita, A. (2011). Trade Policy, Trade Costs, and Developing Country Trade”. World Development 12, no. 39, 2069-79. URL: https://econpapers.repec.org/article/eeewdevel/v_3a39_3ay_3a2011_3ai_3a12_3ap_3a2069-2079.htm
Hummels, David L., and Georg Schaur. (2013). Time as a Trade Barrier." American Economic Review, 103 (7), 2935-59. DOI: https://doi.org/10.1257/aer.103.7.2935
Kepaptsoglou, K., Karlaftis, M. G., Tsamboulas, D. (2010). The Gravity Model Specification for Modeling International Trade Flows and Free Trade Agreement Effects: a 10-year Review of Empirical Studies, The Open Economics Journal, vol. 3, 1–13. DOI: http://dx.doi.org/10.2174/1874919401003010001
Morici P. (1983). U.S. Economic Policies Affecting Industrial Trade: a Quantitative Assessment. Washington, D.C., National Planning Association.
Moroz, A. R. (1985). Approaches and Methodologies for Estimating NonTariff Barriers. Ottawa.
Moroz, A. R., Brown, S. L. (1987). Grant Support and Trade Protection for Canadian Industries. Ottawa, Government of Canada.
Nogues, J. J., Olechowski, A., Winters, L. A. (1986). The Extent of Nontariff Barriers to Imports of Industrial Countries, The World Bank Staff Working Paper, No. SWP 789. URL: https://econpapers.repec.org/article/oupwbecrv/v_3a1_3ay_3a1986_3ai_3a1_3ap_3a181-99.htm
Non-Tariff Measures: Evidence from Selected Developing Countries and Future Research Agenda. 2010. United Nations Conference on Trade and Development. New York; Geneva. URL: https://digitallibrary.un.org/record/697870?ln
Obstfeld, M., Rogoff, K. (2000). The Six Major Puzzles in International Macroeconomics: is there a Common Cause? NBER Macroeconomics Annual 15, vol. 1, 339–390. URL: https://www.nber.org/papers/w7777
Rodriguez, C. A. (1974). The Non-Equivalence of Tariffs and Quotas under Retaliation, Journal of International Economics 3, Elsevier, vol. 4, 295–298. URL: https://ideas.repec.org/a/eee/inecon/v4y1974i3p295-298.html
Staiger, R.W. (2015). Non-Tariff Measures and the WTO. Dartmouth and NBER. URL: https://www.wto.org/english/res_e/reser_e/ersd201201_e.pdf
Studies on Regulatory and Procedural Barriers to Trade. UNECE. URL: https://unece.org/trade/studies-regulatory-and-procedural-barriers-trade
Tucci, A., Loridan, M. (2016). Navigating Non-Tariff Measures: Insights from a Business Survey in the European Union. Geneva, ITC/EC. URL: https://trade.ec.europa.eu/doclib/docs/2016/december/tradoc_155181.pdf
World Tariff Profiles 2016. Geneva, ITC, UNCTAD, 2016. URL: https://unctad.org/system/files/official-document/wto2016_en.pdf
World Trade Report 2012. Geneva, 2012. URL: https://www.wto.org/english/res_e/booksp_e/anrep_e/world_trade_report12_e.pdf