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Trade Policy Uncertainty and the WTO

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  • Valeria Groppo
  • Roberta Piermartini

Abstract

This paper discusses the impact of WTO commitments on changes in MFN applied tariffs, isolating pure trade policy changes from any other change in the level of protection due to market conditions by focusing on ad valorem tariffs. We measure trade policy uncertainty as the probability of a tariff increase to account for the fact that it is only the prospect of a bad shock that affects an exporter’s decision of whether to enter a certain market.

Suggested Citation

  • Valeria Groppo & Roberta Piermartini, 2015. "Trade Policy Uncertainty and the WTO," Working Papers id:6419, eSocialSciences.
  • Handle: RePEc:ess:wpaper:id:6419
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    More about this item

    Keywords

    WTO; tariff policy; trade agreements; price volatility; shock; policies; market; gains from trade agreements; commitments; tariffs formation; binding overhang.;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F5 - International Economics - - International Relations, National Security, and International Political Economy

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