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http://ssrn.com/abstract=263955
 
 

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Non-Tariff Barrier and Trade Liberalization


Nicolas Schmitt


Simon Fraser University; CESifo (Center for Economic Studies and Ifo Institute)

Simon P. Anderson


University of Virginia - Department of Economics

February 2000

CESifo Working Paper Series No. 254

Abstract:     
This paper shows that governments have no incentive to introduce non-tariff barriers when they are free to set tariffs but they do when tariffs are determined cooperatively. We then show three results. First, with trade liberalization, there is a progression from using tariffs only to quotas, and to antidumping constraints (when quotas are jointly eliminated). Second, there is a narrowing of the range of industries in which each instrument is used. Third, the degree of tariff liberalization and of replacement of tariffs by NTBs depend on industry characteristics. These results are roughly in line with the empirical evidence.

Number of Pages in PDF File: 36

JEL Classification: F12, F13, L13

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Date posted: April 5, 2001  

Suggested Citation

Schmitt, Nicolas and Anderson, Simon P., Non-Tariff Barrier and Trade Liberalization (February 2000). CESifo Working Paper Series No. 254. Available at SSRN: http://ssrn.com/abstract=263955

Contact Information

Nicolas Schmitt (Contact Author)
Simon Fraser University ( email )
Department of Economics
8888 University Drive
Burnaby, BC V5A 1S6
Canada
604 291 4582 (Phone)
HOME PAGE: http://www.sfu.ca/~schmitt/
CESifo (Center for Economic Studies and Ifo Institute)
Poschinger Str. 5
Munich, DE-81679
Germany
Simon P. Anderson
University of Virginia (UVA) - Department of Economics ( email )
P.O. Box 400182
Charlottesville, VA 22904-4182
United States
804-924-3861 (Phone)
804-982-2904 (Fax)
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