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Domestic Distortions and International Trade.

Abstract:

In this paper, the authors develop techniques for measuring the trade policy equivalent of domestic distortions using a distance function approach. Their measure, the trade restrictiveness index, is shown to equal the uniform tariff that is welfare equivalent to a given pattern of domestic taxes and subsidies. The authors extend the index to incorporate taxes in markets for nontraded goods and factors of production and illustrate its operationality with an application to liberalization in Mex...

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Journal:
International Economic Review More from this journal
Volume:
36
Publication date:
1995-01-01
ISSN:
0020-6598
Language:
English
UUID:
uuid:f67af310-10c6-4c5c-974d-43ab1006bba2
Local pid:
oai:economics.ouls.ox.ac.uk:10757
Deposit date:
2011-08-16

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