Report Number

1997-008

Abstract

We analyze the effects of protection using disaggregated data. This permits analysis of distinct effects of tariffs and NTBs on trade. Our analysis indicates that tariffs tend to shift trade towards larger exporters. We find significant trade diversion caused by tariffs. In the case of NTBs, we find quantitative barriers are more likely to raise prices than are price restrictions. Quantity barriers appear to lead exporters to concentrate on higher priced varieties. We do not find much evidence to suggest that countries not targeted by an NTB gain at the expense of targeted countries. We find that NTBs tend to substitute for tariffs.

Keywords

Protectionism, Tariffs, Trade

Date of this Version

1997

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