Smoke in the Water : The Use of Tariff Policy Flexibility in Crises
As the economic crisis deepens and widens, fears of a return to the protectionist spiral of the 1930s become more common. However, an important difference between the 1930s and today is the existence of the World Trade Organization and the legal li...
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| Format: | Policy Research Working Paper |
| Language: | English |
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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_20090914082452 http://hdl.handle.net/10986/4242 |
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okr-10986-42422021-04-23T14:02:16Z Smoke in the Water : The Use of Tariff Policy Flexibility in Crises Foletti, Liliana Fugazza, Marco Nicita, Alessandro Olarreaga, Marcelo ABSOLUTE VALUE AGRICULTURAL AGREEMENT AGRICULTURAL PRODUCTS APPLIED TARIFF AVERAGE TARIFF CAPITAL MOBILITY CHECKS DEMAND ELASTICITIES DEMAND ELASTICITY DERIVATIVE DEVELOPED COUNTRIES DOMESTIC PRICE ECONOMIC ACTIVITY ECONOMIC CRISIS ECONOMIC GROWTH EMERGING ECONOMIES EQUILIBRIUM EXCHANGE RATE REGIME FINAL GOODS FINANCIAL SUPPORT FIXED EXCHANGE RATE GLOBAL TRADE IMPORT DUTIES IMPORT VALUE IMPORT VALUES IMPORTS INCOME LEVEL INCOME LEVELS INFORMATION SYSTEM INTERMEDIATE GOODS INTERNATIONAL BANK INTERNATIONAL TRADE MEMBER COUNTRIES NON-TARIFF BARRIERS POLICY RESPONSES POSITIVE COEFFICIENT PREFERENTIAL AGREEMENTS PREFERENTIAL TRADE PREFERENTIAL TRADE AGREEMENTS PROTECTIONISM PROTECTIONIST REAL EXCHANGE RATE RECESSIONS REGIONAL TRADE REGIONAL TRADE AGREEMENTS RETURN TARIFF ACT TARIFF BINDING TARIFF BINDINGS TARIFF CHANGES TARIFF INCREASES TARIFF LINE TARIFF LINES TARIFF POLICY TRADE BARRIERS TRADE DISTORTIONS TRADE PROTECTION TRADE VALUES TRANSPARENCY UNION VALUE OF IMPORTS WORLD TRADE WORLD TRADE ORGANIZATION As the economic crisis deepens and widens, fears of a return to the protectionist spiral of the 1930s become more common. However, an important difference between the 1930s and today is the existence of the World Trade Organization and the legal limits it imposes on the protectionist responses members can pursue. The objective of this paper is threefold. First, to assess the extent to which applied tariff can legally be raised without violating tariff-bound obligations, and compare it with what is economically possible. Second, to examine what has been the protectionist response of individual countries when facing an economic crisis since the creation of the WTO. Finally, to predict how far the protectionist responses will go during the current crisis. Results suggest that the policy space left when looking at what is economically possible is indeed quite large. However, in the recent past very little of the available policy space has been used by countries suffering from an economic crisis. Our predictions for the current crisis are modest tariff hikes in the order of 8 percent. 2012-03-19T19:12:28Z 2012-03-19T19:12:28Z 2009-09-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090914082452 http://hdl.handle.net/10986/4242 English Policy Research working paper ; no. WPS 5050 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 |
ABSOLUTE VALUE AGRICULTURAL AGREEMENT AGRICULTURAL PRODUCTS APPLIED TARIFF AVERAGE TARIFF CAPITAL MOBILITY CHECKS DEMAND ELASTICITIES DEMAND ELASTICITY DERIVATIVE DEVELOPED COUNTRIES DOMESTIC PRICE ECONOMIC ACTIVITY ECONOMIC CRISIS ECONOMIC GROWTH EMERGING ECONOMIES EQUILIBRIUM EXCHANGE RATE REGIME FINAL GOODS FINANCIAL SUPPORT FIXED EXCHANGE RATE GLOBAL TRADE IMPORT DUTIES IMPORT VALUE IMPORT VALUES IMPORTS INCOME LEVEL INCOME LEVELS INFORMATION SYSTEM INTERMEDIATE GOODS INTERNATIONAL BANK INTERNATIONAL TRADE MEMBER COUNTRIES NON-TARIFF BARRIERS POLICY RESPONSES POSITIVE COEFFICIENT PREFERENTIAL AGREEMENTS PREFERENTIAL TRADE PREFERENTIAL TRADE AGREEMENTS PROTECTIONISM PROTECTIONIST REAL EXCHANGE RATE RECESSIONS REGIONAL TRADE REGIONAL TRADE AGREEMENTS RETURN TARIFF ACT TARIFF BINDING TARIFF BINDINGS TARIFF CHANGES TARIFF INCREASES TARIFF LINE TARIFF LINES TARIFF POLICY TRADE BARRIERS TRADE DISTORTIONS TRADE PROTECTION TRADE VALUES TRANSPARENCY UNION VALUE OF IMPORTS WORLD TRADE WORLD TRADE ORGANIZATION |
| spellingShingle |
ABSOLUTE VALUE AGRICULTURAL AGREEMENT AGRICULTURAL PRODUCTS APPLIED TARIFF AVERAGE TARIFF CAPITAL MOBILITY CHECKS DEMAND ELASTICITIES DEMAND ELASTICITY DERIVATIVE DEVELOPED COUNTRIES DOMESTIC PRICE ECONOMIC ACTIVITY ECONOMIC CRISIS ECONOMIC GROWTH EMERGING ECONOMIES EQUILIBRIUM EXCHANGE RATE REGIME FINAL GOODS FINANCIAL SUPPORT FIXED EXCHANGE RATE GLOBAL TRADE IMPORT DUTIES IMPORT VALUE IMPORT VALUES IMPORTS INCOME LEVEL INCOME LEVELS INFORMATION SYSTEM INTERMEDIATE GOODS INTERNATIONAL BANK INTERNATIONAL TRADE MEMBER COUNTRIES NON-TARIFF BARRIERS POLICY RESPONSES POSITIVE COEFFICIENT PREFERENTIAL AGREEMENTS PREFERENTIAL TRADE PREFERENTIAL TRADE AGREEMENTS PROTECTIONISM PROTECTIONIST REAL EXCHANGE RATE RECESSIONS REGIONAL TRADE REGIONAL TRADE AGREEMENTS RETURN TARIFF ACT TARIFF BINDING TARIFF BINDINGS TARIFF CHANGES TARIFF INCREASES TARIFF LINE TARIFF LINES TARIFF POLICY TRADE BARRIERS TRADE DISTORTIONS TRADE PROTECTION TRADE VALUES TRANSPARENCY UNION VALUE OF IMPORTS WORLD TRADE WORLD TRADE ORGANIZATION Foletti, Liliana Fugazza, Marco Nicita, Alessandro Olarreaga, Marcelo Smoke in the Water : The Use of Tariff Policy Flexibility in Crises |
| geographic_facet |
The World Region The World Region |
| relation |
Policy Research working paper ; no. WPS 5050 |
| description |
As the economic crisis deepens and
widens, fears of a return to the protectionist spiral of the
1930s become more common. However, an important difference
between the 1930s and today is the existence of the World
Trade Organization and the legal limits it imposes on the
protectionist responses members can pursue. The objective of
this paper is threefold. First, to assess the extent to
which applied tariff can legally be raised without violating
tariff-bound obligations, and compare it with what is
economically possible. Second, to examine what has been the
protectionist response of individual countries when facing
an economic crisis since the creation of the WTO. Finally,
to predict how far the protectionist responses will go
during the current crisis. Results suggest that the policy
space left when looking at what is economically possible is
indeed quite large. However, in the recent past very little
of the available policy space has been used by countries
suffering from an economic crisis. Our predictions for the
current crisis are modest tariff hikes in the order of 8 percent. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Foletti, Liliana Fugazza, Marco Nicita, Alessandro Olarreaga, Marcelo |
| author_facet |
Foletti, Liliana Fugazza, Marco Nicita, Alessandro Olarreaga, Marcelo |
| author_sort |
Foletti, Liliana |
| title |
Smoke in the Water : The Use of Tariff Policy Flexibility in Crises |
| title_short |
Smoke in the Water : The Use of Tariff Policy Flexibility in Crises |
| title_full |
Smoke in the Water : The Use of Tariff Policy Flexibility in Crises |
| title_fullStr |
Smoke in the Water : The Use of Tariff Policy Flexibility in Crises |
| title_full_unstemmed |
Smoke in the Water : The Use of Tariff Policy Flexibility in Crises |
| title_sort |
smoke in the water : the use of tariff policy flexibility in crises |
| 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_20090914082452 http://hdl.handle.net/10986/4242 |
| _version_ |
1764390562430976000 |