Estimating Ad Valorem Equivalents of Non-Tariff Measures

Fostering Argentina’s integration into the world economy

“…The main reasons are macroeconomic and political instability, low infrastructure quality and high trade barriers. Other key factors that influence the stock of foreign direct investment are labour costs, institutional quality (corruption, the rule of law), skills or intellectual property protection (Cadestin, Gourdon and Kowalski, 2016 [5]). The objective behind incoming foreign direct investment influences its effects on the domestic economy.…”

“…As sectors with a negative output shock might be targeted by higher import protection, sectoral output tariffs might be correlated with the error term due to simultaneity, leading to possible downward bias of the coefficients in the fixed effects estimation of equation (5). To address these possible endogeneity issues, equation (5) is estimated using instrumental variables.…”

Influencing GVCs through Agro-Food Policy and Reform

“…Despite the reasons for NTMs, recent estimates (Cadot, Gourdon and van Tongeren, 2018) suggest that they have significant impacts on agro-food trade. The ad valorem equivalents of NTMs are on average significantly greater than those of tariffs ( Figure 5).…”

“…Further, complaints over NTMs raised as specific trade concerns at the WTO suggest that these measures may be creating additional frictions in world markets over timethe number of new complaints lodged has been rising since 2000 (OECD, 2016). However, unlike tariffs, it is not feasible to think of reducing the observed estimated level to zero as this could actually be welfare decreasing (Cadot, Gourdon and van Tongeren, 2018). Instead, in 4 Ad valorem equivalents represent the tariff rate equivalent of the NTM.…”

ASEAN rice market integration: findings from a feasibility study

“…QRs are quantitative restrictions; PSI is pre-shipment inspection; TBT means technical barriers to trade and SPS means sanitary and phyto-sanitary. Source:Cadot, Gourdon and van Tongeren (2018).…”