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Non-tariff measures vs. tariffs: A fresh look at the evidence

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  • Kuenzel, David J.

Abstract

This paper examines the relationship between tariffs and the usage of non-tariff measures (NTMs) for a product-level global panel of 97 countries over the period 1996–2020. Using the most comprehensive NTM data set to date, I find that tariff levels or changes therein are of little relevance for implementing NTMs. Instead, smaller tariff overhangs, the difference between WTO members’ bound and applied tariff rates, emerge as a significant predictor of future NTM actions. The inverse link between tariff overhangs and NTMs is observable both (i) at the aggregate NTM level and (ii) for the large majority of different NTM subcategories.

Suggested Citation

  • Kuenzel, David J., 2024. "Non-tariff measures vs. tariffs: A fresh look at the evidence," Economics Letters, Elsevier, vol. 237(C).
    • Handle: RePEc:eee:ecolet:v:237:y:2024:i:c:s0165176524001526
    DOI: 10.1016/j.econlet.2024.111669
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    References listed on IDEAS

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    1. Egger, Peter & Larch, Mario, 2008. "Interdependent preferential trade agreement memberships: An empirical analysis," Journal of International Economics, Elsevier, vol. 76(2), pages 384-399, December.
    2. Beshkar, Mostafa & Bond, Eric W. & Rho, Youngwoo, 2015. "Tariff binding and overhang: Theory and evidence," Journal of International Economics, Elsevier, vol. 97(1), pages 1-13.
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    More about this item

    Keywords

    Non-tariff measures; Tariffs; GATT/WTO;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations

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