Estimating Importer-Specific Ad Valorem Equivalents of Non-Tariff Measures


Mahdi Ghodsi, Julia Grübler and Robert Stehrer

wiiw Working Paper No. 129, September 2016
48 pages including 13 Tables and 10 Figures

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In this paper, we examine the relevance of non-tariff measures (NTMs) at the 6-digit level of the Harmonised System over the period 2002-2011 by estimating ad valorem equivalents. We draw on information of NTMs notified to the WTO from the Integrated Trade Intelligence Portal (I-TIP), distinguishing various NTM types, such as technical barriers to trade and sanitary and phytosanitary measures. To assess whether NTMs facilitate or impede trade across countries we apply a gravity approach, which allows calculating implied ad valorem equivalents of NTMs for about 100 WTO member countries. Evidence of these AVEs is provided differentiated by NTM types, income groups, industries and product categories.


Keywords: non-tariff measures, trade barriers, ad valorem equivalent, gravity model, I-TIP

JEL classification: F13, F14

Countries covered: WTO members

Research Areas: International Trade, Competitiveness and FDI