Estimating Trade Restrictiveness Indices. DECRG-Trade The World Bank October 2004. Motivation:. Input to Global Monitoring Report. Request by GMR: Comparison of trade restrictiveness across countries Any patterns across regions/time? Two indicators: restrictiveness of own trade policy
The World Bank
Input to Global Monitoring Report.
Request by GMR:
The OTRI addresses these two problems with sound theoretical approaches, and not ad-hoc criteria.
1) Focus on tariff data
2) Focus on trade data (import, export shares)
3)Measure all instruments with a common metric
- IMF’s TRI: ad-hoc criteria.
- AVE of NTBs: theoretically sound.
1) Simple averages?
2) Import-weighted averages?
3) Frequency ratios?
3) IMF’s TRI?
4) GDP weighted for regional groups?
No. All are a-theoretical
Import Demand Elasticities:
Trade data (COMTRADE) - HS6 1988-2002 - 117 Countries.
WDI for factor endowments
Between 1000 and 4500 HS products for each country
Total number of import demand elasticities estimated is about 320,000
AVEs of NTB:
Core NTB (Price control, Quantity control, etc..)
Domestic Subsidies (WTO notifications)
UNCTAD Data (TRAINS) – HS6 (mostly around 2000) 94 Countries (EU counts as one)
OECD Tariff and Trade CD-ROM. Unctad’s AVEs of specific tariffs.
94 Countries (EU counts as one).
MTRI estimated at the bilateral level (10,000 different MTRI)