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Reassessing effective protection rates in a trade in tasks perspective: Evolution of trade policy in "Factory Asia"

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  • Diakantoni, Antonia
  • Escaith, Hubert

Abstract

International trade moved from "trade in goods" to "trade in tasks" and effective protection rates (EPRs) are back to the analytical stage. They measure the overall protection that sectoral value-added is receiving from applied tariffs. The paper calculates sectorial EPRs for 10 Asian-Pacific countries between 1995 and 2005 and proposes simple methods aimed at isolating the specific contribution of changes in tariff policies, in production structure or in real exchange rates. International input-output matrices allowed also to compute and compare the average propagation length of a shock linked to a sudden change in tariff duties, identifying sectors most deeply interconnected.

Suggested Citation

  • Diakantoni, Antonia & Escaith, Hubert, 2012. "Reassessing effective protection rates in a trade in tasks perspective: Evolution of trade policy in "Factory Asia"," MPRA Paper 41723, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:41723
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    References listed on IDEAS

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    Cited by:

    1. Diakantoni, Antonia & Escaith, Hubert & Roberts, Michael & Verbeet, Thomas, 2017. "Accumulating trade costs and competitiveness in global value chains," WTO Staff Working Papers ERSD-2017-02, World Trade Organization (WTO), Economic Research and Statistics Division.
    2. Ben Shepherd, 2021. "Effective Rates of Protection in a World With Non-Tariff Measures and Supply Chains: Evidence from ASEAN," Working Papers DP-2021-27, Economic Research Institute for ASEAN and East Asia (ERIA).
    3. Escaith, Hubert, 2014. "Exploring the policy dimensions of trade in value-added," MPRA Paper 59891, University Library of Munich, Germany, revised 08 Nov 2014.
    4. Antimiani, Alessandro & Fusacchia, Ilaria & Salvatici, Luca, 2016. "Value Added Trade Restrictiveness Indexes. Measuring Protection with Global Value Chains," Conference papers 332745, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. Alyson C. Ma & Ari Van Assche, 2014. "Vertical specialization, tariff shirking and trade," Chapters, in: Benno Ferrarini & David Hummels (ed.), Asia and Global Production Networks, chapter 5, pages 148-178, Edward Elgar Publishing.
    6. Mokhethi, N.I. & Bahta, Y.T. & Ogundeji, A.A., 2015. "Pr - Trade Structure And Pattern Of Wool And Mohair Export Of Lesotho," 20th Congress, Quebec, Canada, 2015 345758, International Farm Management Association.
    7. Ma, Alyson C. & Van Assche, Ari, 2014. "Vertical Specialization, Tariff Shirking, and Trade," ADB Economics Working Paper Series 390, Asian Development Bank.
    8. Jie Wu & Chan‐Guk Huh & Jacob Wood, 2021. "Globally chained economies, unwitting victims of the US‐China trade war," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 35(2), pages 60-76, November.
    9. Diakantoni, Antonia & Escaith, Hubert, 2014. "Trade in tasks, tariff policy and effective protection rates," MPRA Paper 60675, University Library of Munich, Germany.
    10. Hubert Escaith, 2014. "Mapping global value chains and measuring trade in tasks," Chapters, in: Benno Ferrarini & David Hummels (ed.), Asia and Global Production Networks, chapter 9, pages 287-337, Edward Elgar Publishing.
    11. Rouzet, Dorothée & Miroudot, Sébastien, 2013. "The Cumulative Impact of Trade Barriers along the Value Chain: An Empirical Assessment using the OECD Inter-Country Input-Output Model," Conference papers 332366, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    12. Fang, Delin & Duan, Cuncun & Chen, Bin, 2020. "Average propagation length analysis for carbon emissions in China," Applied Energy, Elsevier, vol. 275(C).
    13. Ilaria Fusacchia & Alessandro Antimiani & Luca Salvatici, 2021. "An assessment of import tariff costs for Italian exporting firms," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(1), pages 31-56, April.
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    More about this item

    Keywords

    Tariff; Input-Output; Effective Protection; Trade in Value Added; International Outsourcing;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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