Trade Barriers and Trade Flows Across Countries and Industries

The Review of Economics and Statistics, Vol. 74, No. 3, August 1997

Posted: 1 May 1998

See all articles by Jong-Wha Lee

Jong-Wha Lee

Korea University

Phillip Swagel

Northwestern University - Department of Economics; International Monetary Fund (IMF)

Abstract

We use disaggregated data on trade flows, production, and trade barriers for 41 countries in 1988 to examine the political and economic determinants of nontariff barriers, as well as the impact of protection (both tariff and nontariff) on trade flows. We use an econometric framework that allows for the simultaneous determination of trade barriers and trade flows. Our results are consistent with political-economy theories of the determinants of protection: even after accounting for industry- and country-specific factors, nations tend to protect industries that are weak, in decline, politically important, or threatened by import competition, but provide less protection to industries in which exports are important.

JEL Classification: F14

Suggested Citation

Lee, Jong-Wha and Swagel, Phillip, Trade Barriers and Trade Flows Across Countries and Industries. The Review of Economics and Statistics, Vol. 74, No. 3, August 1997. Available at SSRN: https://ssrn.com/abstract=82248

Jong-Wha Lee

Korea University ( email )

Anam-dong, Sungbuk-Ku
Dept. of Economics
Seoul, 136-701
82-2-3290-2216 (Phone)
82-2-928-4948 (Fax)

Phillip Swagel (Contact Author)

Northwestern University - Department of Economics ( email )

2003 Sheridan Road
Evanston, IL 60208
United States
(847) 491-8219 (Phone)

International Monetary Fund (IMF) ( email )

700 19th Street NW
IMF Room 10-612F
Washington, DC 20431
United States
(202) 623-7301 (Phone)
(202) 623-6343 (Fax)

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