|
|
 |
|
Viewing report
|
|
|
|
Endogenous Trade Protection under Regional Trade
Agreements. Edition No. 1
VDM Publishing House, Sep 2008, Pages: 84
Endogenous tariff formation has been the subject of
theoretical studies that attempt to determine the
fundamental economic variables that influence the
structure of industry protection implemented by
international trade policy makers. An empirical
analysis of endogenous tariff formation under the
framework of a regional trade agreement implemented
by the Andean Community Group is offered in this
book. Econometric models for the group’s common
external tariff (CET) and for individual country
tariff deviations with respect to the CET are
estimated. The causal links among the variables are
obtained by using the directed acyclical graphs (DAG)
approach, which allows for a refined search for
causal relationships. The approach is particularly
appealing for the analysis of endogenous trade
protection since it allows analyzing economic systems
that involve policy intervention. The empirical
analysis supports classic theoretical models on trade
protection, such as the equity concern model, the
interest group and the adding machine model. However,
a rather interesting result derived from the DAG
analysis is the feedback interaction that seems to
operate between tariffs and policy variables.
|
|
|
|
