Measuring the Impacts of Global Trade Reform with Optimal Aggregators of Distortions
Traditional weighted-average measures of trade distortions are widely used in analyzing global and regional reforms, despite well-known deficiencies. This paper develops and applies optimal aggregators for the real-world case of multiple countries...
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| Format: | Policy Research Working Paper |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110518163857 http://hdl.handle.net/10986/3428 |
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okr-10986-34282021-04-23T14:02:09Z Measuring the Impacts of Global Trade Reform with Optimal Aggregators of Distortions Laborde, David Martin, Will van der Mensbrugghe, Dominique ACCOUNTING ADVERSE IMPACTS AGRICULTURAL TRADE AGRICULTURE APPAREL APPLIED STUDIES APPLIED TARIFF AVERAGE TARIFF AVERAGE TARIFFS BENEFITS OF TRADE BILATERAL TARIFFS BORDER PROTECTION BUDGETING CAPITAL GOODS CONSTANT ELASTICITY OF SUBSTITUTION COUNTRY OF ORIGIN DEMAND ELASTICITIES DEVELOPING COUNTRIES DEVELOPMENT POLICY DOMESTIC DEMAND DOMESTIC PRICE ECONOMETRIC ANALYSIS ECONOMIC EFFICIENCY ECONOMIC INTEGRATION ECONOMIC MODELS ECONOMIC WELFARE ELASTICITY ELASTICITY OF SUBSTITUTION EXPENDITURE EXPENDITURES EXPORT MARKETS EXPORT VOLUME EXPORTERS EXPORTS FEDERAL RESERVE FEDERAL RESERVE BANK FREE TRADE FREE TRADE AGREEMENTS FULL LIBERALIZATION GDP GENERAL EQUILIBRIUM ANALYSIS GENERAL EQUILIBRIUM MODEL GENERAL EQUILIBRIUM MODELING GLOBAL COMPUTABLE GENERAL EQUILIBRIUM GLOBAL TRADE GLOBAL TRADE ANALYSIS GLOBALIZATION HIGH TARIFFS IMPORT PRICES IMPORT QUANTITIES IMPORT VOLUMES INCOME TAXES INTERNATIONAL BANK INTERNATIONAL ECONOMICS INTERNATIONAL PRICES INTERNATIONAL TRADE LAFFER CURVE LOW TARIFFS MARKET ACCESS MIDDLE INCOME COUNTRIES NATURAL RESOURCES OPEN ECONOMY PREFERENTIAL ACCESS PREFERENTIAL TARIFFS PRICE INDEX PRODUCTION FUNCTION PROTECTION RATES PROTECTIONIST RATES OF PROTECTION REAL GDP REAL INCOME REDUCTION IN TARIFFS RETURN RETURNS REVENUE CURVE SET OF TARIFFS TARIFF CHANGES TARIFF LINES TARIFF PREFERENCE TARIFF PREFERENCES TARIFF PROTECTION TARIFF RATE TARIFF RATES TARIFF REDUCTION TARIFF REDUCTIONS TARIFF REVENUE TARIFF REVENUES TARIFF STRUCTURE TERMS OF TRADE TERMS OF TRADE EFFECTS TERMS-OF-TRADE GAINS TRADE BARRIERS TRADE COSTS TRADE DISTORTIONS TRADE FLOWS TRADE LIBERALIZATION TRADE LIBERALIZATIONS TRADE LOSSES TRADE POLICY TRADE REFORM TRADE REFORMS TRADE VOLUMES TRADING TRADING PARTNERS TRUST FUND UTILITY FUNCTION UTILITY FUNCTIONS VALUE OF IMPORTS VECTOR OF TARIFF WELFARE GAINS WELFARE IMPACTS WORLD PRICES WTO Traditional weighted-average measures of trade distortions are widely used in analyzing global and regional reforms, despite well-known deficiencies. This paper develops and applies optimal aggregators for the real-world case of multiple countries and commodities with much more detailed information on trade than on production and consumption. The approach reflects the fact that different aggregators are needed for expenditure on imported goods and for tariff revenues, and allows for incorporation of both intensive and extensive margins of adjustment to reform. Applications confirm that the technique is straightforward enough for widespread use, and point to close to a doubling of the welfare gains at the intensive margin when using the highest possible level of international commodity disaggregation, with larger gains in developing regions than in the industrial countries. The measured income gains increase along the entire path of liberalization, with slightly larger increases in the earlier stages, where the gaps between the responses of the expenditure and tariff revenue aggregators are largest. Sensitivity analysis suggests that, for global trade reform, the ease of substitution between tariff lines is much more important than that between varieties from different countries. 2012-03-19T18:02:17Z 2012-03-19T18:02:17Z 2011-05-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110518163857 http://hdl.handle.net/10986/3428 English Policy Research working paper ; no. WPS 5665 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCOUNTING ADVERSE IMPACTS AGRICULTURAL TRADE AGRICULTURE APPAREL APPLIED STUDIES APPLIED TARIFF AVERAGE TARIFF AVERAGE TARIFFS BENEFITS OF TRADE BILATERAL TARIFFS BORDER PROTECTION BUDGETING CAPITAL GOODS CONSTANT ELASTICITY OF SUBSTITUTION COUNTRY OF ORIGIN DEMAND ELASTICITIES DEVELOPING COUNTRIES DEVELOPMENT POLICY DOMESTIC DEMAND DOMESTIC PRICE ECONOMETRIC ANALYSIS ECONOMIC EFFICIENCY ECONOMIC INTEGRATION ECONOMIC MODELS ECONOMIC WELFARE ELASTICITY ELASTICITY OF SUBSTITUTION EXPENDITURE EXPENDITURES EXPORT MARKETS EXPORT VOLUME EXPORTERS EXPORTS FEDERAL RESERVE FEDERAL RESERVE BANK FREE TRADE FREE TRADE AGREEMENTS FULL LIBERALIZATION GDP GENERAL EQUILIBRIUM ANALYSIS GENERAL EQUILIBRIUM MODEL GENERAL EQUILIBRIUM MODELING GLOBAL COMPUTABLE GENERAL EQUILIBRIUM GLOBAL TRADE GLOBAL TRADE ANALYSIS GLOBALIZATION HIGH TARIFFS IMPORT PRICES IMPORT QUANTITIES IMPORT VOLUMES INCOME TAXES INTERNATIONAL BANK INTERNATIONAL ECONOMICS INTERNATIONAL PRICES INTERNATIONAL TRADE LAFFER CURVE LOW TARIFFS MARKET ACCESS MIDDLE INCOME COUNTRIES NATURAL RESOURCES OPEN ECONOMY PREFERENTIAL ACCESS PREFERENTIAL TARIFFS PRICE INDEX PRODUCTION FUNCTION PROTECTION RATES PROTECTIONIST RATES OF PROTECTION REAL GDP REAL INCOME REDUCTION IN TARIFFS RETURN RETURNS REVENUE CURVE SET OF TARIFFS TARIFF CHANGES TARIFF LINES TARIFF PREFERENCE TARIFF PREFERENCES TARIFF PROTECTION TARIFF RATE TARIFF RATES TARIFF REDUCTION TARIFF REDUCTIONS TARIFF REVENUE TARIFF REVENUES TARIFF STRUCTURE TERMS OF TRADE TERMS OF TRADE EFFECTS TERMS-OF-TRADE GAINS TRADE BARRIERS TRADE COSTS TRADE DISTORTIONS TRADE FLOWS TRADE LIBERALIZATION TRADE LIBERALIZATIONS TRADE LOSSES TRADE POLICY TRADE REFORM TRADE REFORMS TRADE VOLUMES TRADING TRADING PARTNERS TRUST FUND UTILITY FUNCTION UTILITY FUNCTIONS VALUE OF IMPORTS VECTOR OF TARIFF WELFARE GAINS WELFARE IMPACTS WORLD PRICES WTO |
| spellingShingle |
ACCOUNTING ADVERSE IMPACTS AGRICULTURAL TRADE AGRICULTURE APPAREL APPLIED STUDIES APPLIED TARIFF AVERAGE TARIFF AVERAGE TARIFFS BENEFITS OF TRADE BILATERAL TARIFFS BORDER PROTECTION BUDGETING CAPITAL GOODS CONSTANT ELASTICITY OF SUBSTITUTION COUNTRY OF ORIGIN DEMAND ELASTICITIES DEVELOPING COUNTRIES DEVELOPMENT POLICY DOMESTIC DEMAND DOMESTIC PRICE ECONOMETRIC ANALYSIS ECONOMIC EFFICIENCY ECONOMIC INTEGRATION ECONOMIC MODELS ECONOMIC WELFARE ELASTICITY ELASTICITY OF SUBSTITUTION EXPENDITURE EXPENDITURES EXPORT MARKETS EXPORT VOLUME EXPORTERS EXPORTS FEDERAL RESERVE FEDERAL RESERVE BANK FREE TRADE FREE TRADE AGREEMENTS FULL LIBERALIZATION GDP GENERAL EQUILIBRIUM ANALYSIS GENERAL EQUILIBRIUM MODEL GENERAL EQUILIBRIUM MODELING GLOBAL COMPUTABLE GENERAL EQUILIBRIUM GLOBAL TRADE GLOBAL TRADE ANALYSIS GLOBALIZATION HIGH TARIFFS IMPORT PRICES IMPORT QUANTITIES IMPORT VOLUMES INCOME TAXES INTERNATIONAL BANK INTERNATIONAL ECONOMICS INTERNATIONAL PRICES INTERNATIONAL TRADE LAFFER CURVE LOW TARIFFS MARKET ACCESS MIDDLE INCOME COUNTRIES NATURAL RESOURCES OPEN ECONOMY PREFERENTIAL ACCESS PREFERENTIAL TARIFFS PRICE INDEX PRODUCTION FUNCTION PROTECTION RATES PROTECTIONIST RATES OF PROTECTION REAL GDP REAL INCOME REDUCTION IN TARIFFS RETURN RETURNS REVENUE CURVE SET OF TARIFFS TARIFF CHANGES TARIFF LINES TARIFF PREFERENCE TARIFF PREFERENCES TARIFF PROTECTION TARIFF RATE TARIFF RATES TARIFF REDUCTION TARIFF REDUCTIONS TARIFF REVENUE TARIFF REVENUES TARIFF STRUCTURE TERMS OF TRADE TERMS OF TRADE EFFECTS TERMS-OF-TRADE GAINS TRADE BARRIERS TRADE COSTS TRADE DISTORTIONS TRADE FLOWS TRADE LIBERALIZATION TRADE LIBERALIZATIONS TRADE LOSSES TRADE POLICY TRADE REFORM TRADE REFORMS TRADE VOLUMES TRADING TRADING PARTNERS TRUST FUND UTILITY FUNCTION UTILITY FUNCTIONS VALUE OF IMPORTS VECTOR OF TARIFF WELFARE GAINS WELFARE IMPACTS WORLD PRICES WTO Laborde, David Martin, Will van der Mensbrugghe, Dominique Measuring the Impacts of Global Trade Reform with Optimal Aggregators of Distortions |
| geographic_facet |
The World Region The World Region |
| relation |
Policy Research working paper ; no. WPS 5665 |
| description |
Traditional weighted-average measures of
trade distortions are widely used in analyzing global and
regional reforms, despite well-known deficiencies. This
paper develops and applies optimal aggregators for the
real-world case of multiple countries and commodities with
much more detailed information on trade than on production
and consumption. The approach reflects the fact that
different aggregators are needed for expenditure on imported
goods and for tariff revenues, and allows for incorporation
of both intensive and extensive margins of adjustment to
reform. Applications confirm that the technique is
straightforward enough for widespread use, and point to
close to a doubling of the welfare gains at the intensive
margin when using the highest possible level of
international commodity disaggregation, with larger gains in
developing regions than in the industrial countries. The
measured income gains increase along the entire path of
liberalization, with slightly larger increases in the
earlier stages, where the gaps between the responses of the
expenditure and tariff revenue aggregators are largest.
Sensitivity analysis suggests that, for global trade reform,
the ease of substitution between tariff lines is much more
important than that between varieties from different countries. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Laborde, David Martin, Will van der Mensbrugghe, Dominique |
| author_facet |
Laborde, David Martin, Will van der Mensbrugghe, Dominique |
| author_sort |
Laborde, David |
| title |
Measuring the Impacts of Global Trade Reform with Optimal Aggregators of Distortions |
| title_short |
Measuring the Impacts of Global Trade Reform with Optimal Aggregators of Distortions |
| title_full |
Measuring the Impacts of Global Trade Reform with Optimal Aggregators of Distortions |
| title_fullStr |
Measuring the Impacts of Global Trade Reform with Optimal Aggregators of Distortions |
| title_full_unstemmed |
Measuring the Impacts of Global Trade Reform with Optimal Aggregators of Distortions |
| title_sort |
measuring the impacts of global trade reform with optimal aggregators of distortions |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110518163857 http://hdl.handle.net/10986/3428 |
| _version_ |
1764386982237044736 |