TY - JOUR
T1 - Are nontariff measures and tariffs substitutes? Some panel data evidence
AU - Niu, Zhaohui
AU - Milner, Chris
AU - Gunessee, Saileshsingh
AU - Liu, Chang
N1 - Publisher Copyright:
© 2019 John Wiley & Sons Ltd
PY - 2020/5/1
Y1 - 2020/5/1
N2 - Using new estimates of ad valorem equivalent of nontariff measures (NTMs) over time, this paper examines NTMs and tariffs’ relationship for a sample of 70 economies for 4,949 products at the 6-digit harmonized system level over the period 2003–2015. A panel data methodology models the lagged adjustment of NTMs to tariffs, consistent with a causal relationship. Trade policy substitution is found when the models are estimated in both levels and changes; with this holding for both OECD and non-OECD countries, but not for the agriculture sector in OECD countries. Overall, there is a fairly complete substitution between policy instruments in absolute terms.
AB - Using new estimates of ad valorem equivalent of nontariff measures (NTMs) over time, this paper examines NTMs and tariffs’ relationship for a sample of 70 economies for 4,949 products at the 6-digit harmonized system level over the period 2003–2015. A panel data methodology models the lagged adjustment of NTMs to tariffs, consistent with a causal relationship. Trade policy substitution is found when the models are estimated in both levels and changes; with this holding for both OECD and non-OECD countries, but not for the agriculture sector in OECD countries. Overall, there is a fairly complete substitution between policy instruments in absolute terms.
UR - http://www.scopus.com/inward/record.url?scp=85074852649&partnerID=8YFLogxK
U2 - 10.1111/roie.12457
DO - 10.1111/roie.12457
M3 - Article
AN - SCOPUS:85074852649
SN - 0965-7576
VL - 28
SP - 408
EP - 428
JO - Review of International Economics
JF - Review of International Economics
IS - 2
ER -