The price-wedge method yields a tariff-equivalent estimate of technical barriers to trade (TBT). An extension of this method accounts for imperfect substitution between domestic and imported goods and incorporates recent findings on trade costs. We explore the sensitivity of this revamped TBT estimate to its key determinants (substitution elasticity, preference for home good, and trade cost). We use the augmented approach to investigate the recent Japan-U.S. apple trade dispute and find that removing the Japanese TBT would yield limited export gains to the United States. We then draw policy implications of our findings.
|Original language||English (US)|
|Title of host publication||Nontariff Measures and International Trade|
|Publisher||World Scientific Publishing Co. Pte Ltd|
|Number of pages||14|
|State||Published - Nov 28 2016|
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© 2017 by World Scientific Publishing Co. Pte. Ltd.
- Technical barriers