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Choked by red tape? The political economy of wasteful trade barriers

Abstract:

Red-tape barriers (RTBs) are an important source of trade costs, but have received little scholarly attention. Here we take a first step toward a theory of RTBs, and show that their implications are very different from those of more traditional trade barriers. Our model highlights that RTBs have important impacts on the extensive margin of trade, and yields rich predictions on how changes in the political-economic environment and product characteristics affect RTBs. Taking into account the en...

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Publication status:
Published

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Publisher:
University of Oxford Publisher's website
Series:
Department of Economics Discussion Paper Series
Publication date:
2018-03-21
Paper number:
847
Keywords:
Pubs id:
868875
Local pid:
pubs:868875
Deposit date:
2020-12-14

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