Non-Tariff Barriers in Computable General Equilibrium Modelling

United Nations Policy Issues in International Trade and Commodities Study Series No. 38

25 Pages Posted: 18 Aug 2009

See all articles by Marco Fugazza

Marco Fugazza

United Nations - Trade Analysis Branch

Jean-Christophe Maur

World Bank; Groupe d'Economie Mondiale (GEM)

Multiple version iconThere are 2 versions of this paper

Date Written: 2008

Abstract

With diminishing tariffs, the focus of trade policy makers and analysts is logically turning towards non-tariff barriers (NTBs), but there much remains to be done. It is well-know that tackling NTBs poses many challenges for the analyst because of their diverse and complex nature, and the lack of available evidence. NTBs pose also particular difficulties to computable/applied general equilibrium (CGE) modelling, traditionally more comfortable with policies whose impact can be interpreted into direct effects on prices.

This research provides a quantification of the impact of NTBs at the global level. The model we use is significantly larger than in previous studies, and to our knowledge, the first truly global one. The main focus of this research, however, is to discuss and question the various treatments of NTBs in CGE models with a specific application of the Global Trade Analysis Project (GTAP) standard model, the workhorse of trade policy CGE analysis.

We find that serious estimation and modelling efforts remain to be undertaken in order to make CGE modelling a useful policy tool to analyze NTBs. Casual policy inferences from loose specifications may indeed lead to serious analytical mistakes. We show that while using the same robust estimates of NTB incidence we obtain vastly different results under different model specifications.

Keywords: Non tariff barriers, Computable general equilibrium

JEL Classification: C68, F13

Suggested Citation

Fugazza, Marco and Maur, Jean-Christophe, Non-Tariff Barriers in Computable General Equilibrium Modelling (2008). United Nations Policy Issues in International Trade and Commodities Study Series No. 38. Available at SSRN: https://ssrn.com/abstract=1456854 or http://dx.doi.org/10.2139/ssrn.1456854

Marco Fugazza (Contact Author)

United Nations - Trade Analysis Branch ( email )

Palais des Nations
Office E 8074
Geneva, 1211
Switzerland

Jean-Christophe Maur

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

HOME PAGE: http://www.worldbank.org/trade

Groupe d'Economie Mondiale (GEM)

28 rue des Saints Peres
Paris, 75007
France

HOME PAGE: http://gem.sciences-po.fr

Register to save articles to
your library

Register

Paper statistics

Downloads
34
Abstract Views
273
PlumX Metrics