Trade liberalization, antidumping, and safeguards: Evidence from India's tariff reform

Bown, Chad P.; Tovar, Patricia

doi:10.1016/j.jdeveco.2010.06.001

Cited by 118 publications

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“…Bown and Tovar (2011) obtain similar results for trade reforms undertaken by India in the 1990s. According to the authors, in India the probability of launching a trade remedy investigation is 50 per cent higher for a one standard deviation increase in trade liberalization.…”

supporting

confidence: 65%

Trade Policy Substitution: Theory and Evidence from Specific Trade Concerns

Beverelli,

Boffa,

Keck

2014

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Manuscript date: 29 October 2014Disclaimer: This is a working paper, and hence it represents research in progress. The opinions expressed in this paper should be attributed to its authors. They are not meant to represent the positions or opinions of the WTO and its Members and are without prejudice to Members' rights and obligations under the WTO. Any errors are attributable to the authors. Trade Policy Substitution:Theory and Evidence from Specific Trade Concerns * Cosimo BeverelliMauro Boffa Alexander Keck AbstractWe investigate to what extent the probability that a Specific Trade Concern (STC) is raised in the WTO against a Member in a given sector is affected by past reductions in applied tariffs. Employing an identification strategy based on 'new measures', we find evidence of a substitution of non-tariff measures for tariffs both in the sample of TBT and in the sample of SPS concerns. While in the SPS sample this result holds both among developed and developing economies, in the TBT sample such 'trade policy substitution' only occurs when the country maintaining the measure at issue is economically developed.These results are consistent with our theoretical model, which predicts policy substitution between tariffs and standards in economies where meeting such standards is relatively less costly and in sectors where meeting such standards is relatively more important from the perspective of producers.

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confidence: 65%

Trade Policy Substitution: Theory and Evidence from Specific Trade Concerns

Beverelli,

Boffa,

Keck

2014

SSRN Journal

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“…They conclude that multilateral trade reductions are the cause of the recent growth in new users of anti-dumping policies. Bown and Tovar (2011) reaffirm the substitution effect by analysing India, which recently became a heavy user of antidumping measures. They demonstrate how India's liberalization reforms in the early 1990s have resulted in a higher probability of AD filings and increased safeguard restrictions.…”

Section: Ntms Tariffs and Trade In The Literaturementioning

confidence: 89%

Tariffs and Non-Tariff Measures: Substitutes or Complements. A Cross-Country Analysis

Ronen

2017

SSRN Journal

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Alongside the global tariff liberalization, a growing body of evidence demonstrates the rise in the use of non-tariff measures (NTMs), which suggests a substitution effect between these two import policy instruments. Yet, detailed economic data reveals that in countries with lower tariff rates (developed countries), the use of NTMs is significantly lower compared to developing countries, which implies a possible complementary effect between tariffs and NTMs across nations. Using a dataset of Kee, Nicita and Olarreaga (2009) on ad valorem tariff equivalents of NTMs, at a very disaggregated product level, this paper explores the determinants of NTMs and their substitutability/complementarity relations with tariff barriers. While exploiting the country variation, it demonstrates the decreasing trend of substitutability between the two import policy instruments with the rise in economic development. In particular, a significant complementarity correlation exists between the two trade measures among the wealthiest nations, implying a stronger commitment to freer trade.

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“…Finally, our empirical model shows that WTO disciplines themselves are an important presents an approach that considers macroeconomic and industry-level determinants of antidumping for a number of the emerging economies in this sample for the period 1995-2002. 4 Bown and Tovar (2011) provide product-level evidence for India that over the period 1992-2002, much of the applied import tariffs cuts were replaced by implementation of new TTBs through antidumping and safeguards. determinant of temporary trade barriers.…”

Section: Introductionmentioning

confidence: 99%

Emerging economies, trade policy, and macroeconomic shocks

Bown

Crowley

2014

Journal of Development Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractThis paper estimates the impact of macroeconomic shocks on the trade policies of thirteen major emerging economies over 1989-2010; by 2010, these WTO member countries collectively accounted for 21 percent of world merchandise imports and 22 percent of world GDP. We examine determinants of carefully constructed, bilateral measures of new import protection imposed at the extensive margin. New import restrictions on products arise through the temporary trade barriers (TTBs) -antidumping, safeguards, and countervailing duties -that have become some of the most important time-varying trade policies in use. Our approach explicitly addresses changes to the institutional environment facing these emerging economies as they joined the WTO and promised to restrain other trade policies by keeping applied import tariffs below specified maximum levels. After controlling for this phenomenon, bilateral real exchange rate fluctuations, and potential differences across exchange rate regimes, we find general evidence of a counter-cyclical relationship between macroeconomic shocks and new import protection through TTBs. Furthermore, for the subset of major G20 emerging economies, the trade policy responsiveness coinciding with the onset of the WTO in 1995 through 2008 suggests a significant change relative to the pre-WTO period; i.e., import protection through these policy instruments became more countercyclical over time. Finally, we document evidence on potential changes to the channels through which macroeconomic shocks affect emerging economy new import protection coinciding with the timing of the Great Recession. JEL No. F13

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Trade liberalization, antidumping, and safeguards: Evidence from India's tariff reform

Cited by 118 publications

References 44 publications

Trade Policy Substitution: Theory and Evidence from Specific Trade Concerns

Trade Policy Substitution: Theory and Evidence from Specific Trade Concerns

Tariffs and Non-Tariff Measures: Substitutes or Complements. A Cross-Country Analysis

Emerging economies, trade policy, and macroeconomic shocks

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