Are nontariff measures and tariffs substitutes? Some panel data evidence

Zhaohui Niu, Chris Milner, Saileshsingh Gunessee, Chang Liu

Research output: Journal PublicationArticlepeer-review

4 Citations (Scopus)
1 Downloads (Pure)

Abstract

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.

Original languageEnglish
Pages (from-to)408-428
Number of pages21
JournalReview of International Economics
Volume28
Issue number2
DOIs
Publication statusPublished - 1 May 2020

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Development

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