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Retaliatory temporary trade barriers: New facts and patterns

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  • Furceri, Davide
  • Ostry, Jonathan D.
  • Papageorgiou, Chris
  • Wibaux, Pauline

Abstract

This paper takes a fresh look into the role of Temporary Trade Barriers (TTBs) and whether they are introduced for strategic reasons. We construct a novel sectoral measure of retaliation using daily bilateral data on TTB responses in 1220 subsectors across a panel of 25 advanced and emerging economies over 1989–2015. We use this measure to present novel stylized facts and patterns suggesting that strategic considerations may be more important (in terms of intensity and frequency) than commonly understood from the existing literature, which has tended to ignore within-year responses. Our evidence indicates that retaliation actually often consists of responses across many sectors and indeed that same-sector retaliation is far from being the norm.

Suggested Citation

  • Furceri, Davide & Ostry, Jonathan D. & Papageorgiou, Chris & Wibaux, Pauline, 2021. "Retaliatory temporary trade barriers: New facts and patterns," Journal of Policy Modeling, Elsevier, vol. 43(4), pages 873-891.
    • Handle: RePEc:eee:jpolmo:v:43:y:2021:i:4:p:873-891
    DOI: 10.1016/j.jpolmod.2021.02.011
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    References listed on IDEAS

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    1. Thomas J. Prusa & Susan Skeath, 2021. "The Economic and Strategic Motives for Antidumping Filings," World Scientific Book Chapters, in: Thomas J Prusa (ed.), Economic Effects of Antidumping, chapter 11, pages 233-257, World Scientific Publishing Co. Pte. Ltd..
    2. Boffa, Mauro & Olarreaga, Marcelo, 2012. "Protectionism during the crisis: Tit-for-tat or chicken-games?," Economics Letters, Elsevier, vol. 117(3), pages 746-749.
    3. Michael O. Moore & Maurizio Zanardi, 2011. "Trade Liberalization and Antidumping: Is There a Substitution Effect?," Review of Development Economics, Wiley Blackwell, vol. 15(4), pages 601-619, November.
    4. Chrysostomos Tabakis & Maurizio Zanardi, 2017. "Antidumping Echoing," Economic Inquiry, Western Economic Association International, vol. 55(2), pages 655-681, April.
    5. Robert M. Feinberg & Kara M. Reynolds, 2006. "The Spread of Antidumping Regimes and the Role of Retaliation in Filings," Southern Economic Journal, John Wiley & Sons, vol. 72(4), pages 877-890, April.
    6. Bown, Chad P. & Crowley, Meredith A., 2013. "Import protection, business cycles, and exchange rates: Evidence from the Great Recession," Journal of International Economics, Elsevier, vol. 90(1), pages 50-64.
    7. Blonigen, Bruce A. & Bown, Chad P., 2003. "Antidumping and retaliation threats," Journal of International Economics, Elsevier, vol. 60(2), pages 249-273, August.
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    1. Furceri, Davide & Ostry, Jonathan D. & Papageorgiou, Chris & Wibaux, Pauline, 2023. "Retaliation through Temporary Trade Barriers," CEPR Discussion Papers 17853, C.E.P.R. Discussion Papers.

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    More about this item

    Keywords

    Trade retaliation; Temporary trade barriers; Sectoral measures; Facts; Patterns;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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