Estimations of Tariff Equivalents for the Services Sectors

CEPII Working Paper 2011-24

47 Pages Posted: 15 Feb 2012

See all articles by Lionel Fontagne

Lionel Fontagne

University of Paris 1 Panthéon Sorbonne; Paris School of Economics; CEPII

Amelie Guillin

Johannes Kepler University

Cristina Mitaritonna

Centre d'Etudes Prospectives et d'Info. Internationales (CEPII)

Date Written: October 25, 2011

Abstract

Methodological issues arising from the estimation of tariff equivalents of barriers to services trade are very relevant for policy. These equivalents are used extensively to compute welfare gains and resource reallocations associated with partial liberalization of the sector; any measurement errors will strongly affect the estimated gains. Using the Global Trade Analysis Project (GTAP) database, we rely on so called quantity based methods to derive tariff equivalents from a gravity equation estimated at sectoral level for 9 services sectors and 65 countries.

We also estimate trade equations for services using cross section data, and improve on the methodology of Park (2002). We investigate whether relying on cross section rather than panel data leads to differences in the estimated equivalents. Finally, we compare the estimations based on reconstructed and actual data. We conclude that although use of partially reconstructed data (such as GTAP) affects the results, the equivalents obtained are good representations of the magnitude of protection for developing economies.

Keywords: market access, tariffs, trade in services

JEL Classification: F13

Suggested Citation

Fontagne, Lionel and Fontagne, Lionel and Guillin, Amelie and Mitaritonna, Cristina, Estimations of Tariff Equivalents for the Services Sectors (October 25, 2011). CEPII Working Paper 2011-24, Available at SSRN: https://ssrn.com/abstract=2004933 or http://dx.doi.org/10.2139/ssrn.2004933

Lionel Fontagne (Contact Author)

University of Paris 1 Panthéon Sorbonne ( email )

Maison des Sciences Economiques
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Paris, 75013
France
+33 1 44 07 89 94 (Phone)
+33 1 53 68 55 01 (Fax)

HOME PAGE: http://lionelfontagne.weebly.com/

Paris School of Economics ( email )

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Paris, 75014 75014
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HOME PAGE: http://lionelfontagne.weebly.com/

CEPII ( email )

9 Rue Georges Pitard
Paris, 75015
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+33 1 53 68 55 06 (Phone)

HOME PAGE: http://lionelfontagne.weebly.com/

Amelie Guillin

Johannes Kepler University ( email )

48 Boulevard Jourdan
Paris, 75014 75014
France

Cristina Mitaritonna

Centre d'Etudes Prospectives et d'Info. Internationales (CEPII) ( email )

9 rue Georges Pitard
Paris Cedex 15, F-75015
France

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