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Ranking trade resistance variables using data envelopment analysis

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  • Badau, Flavius

Abstract

In the context of Justus von Liebig's Law of the Minimum, this study assesses the impacts that trade barriers have on trade resistance between United States (U.S.) manufacturing industries and their trade partners. An undesirable trade resistance model is presented, where trade barriers are (undesirable) inputs into the production of the (undesirable) output, trade resistance. It is then presented how Johansen's notion of Capacity is utilized to assess trade barriers’ impacts. Estimation takes place by employing Data Envelopment Analysis (DEA). Results suggest that U.S. trade partners’ port logistics are the most limiting trade barrier for the U.S. manufacturing industries, followed by the distance between the U.S. and its trade partners, the tariff imposed by the U.S., and the tariff imposed by the trading partner.

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  • Badau, Flavius, 2015. "Ranking trade resistance variables using data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 247(3), pages 978-986.
    • Handle: RePEc:eee:ejores:v:247:y:2015:i:3:p:978-986
    DOI: 10.1016/j.ejor.2015.05.062
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    References listed on IDEAS

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    Cited by:

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    9. Fukuyama, Hirofumi & Song, Yao-yao & Ren, Xian-tong & Yang, Guo-liang, 2022. "Using a novel DEA-based model to investigate capacity utilization of Chinese firms," Omega, Elsevier, vol. 106(C).
    10. Fukuyama, Hirofumi & Liu, Hui-hui & Song, Yao-yao & Yang, Guo-liang, 2021. "Measuring the capacity utilization of the 48 largest iron and steel enterprises in China," European Journal of Operational Research, Elsevier, vol. 288(2), pages 648-665.

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