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 and commodities with much more detailed information...

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Autores principales: Laborde Debucquet, David, Martin, Will, van der Mensbrugghe, Dominique
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2011
Materias:
Acceso en línea:https://hdl.handle.net/10568/154679
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author Laborde Debucquet, David
Martin, Will
van der Mensbrugghe, Dominique
author_browse Laborde Debucquet, David
Martin, Will
van der Mensbrugghe, Dominique
author_facet Laborde Debucquet, David
Martin, Will
van der Mensbrugghe, Dominique
author_sort Laborde Debucquet, David
collection Repository of Agricultural Research Outputs (CGSpace)
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 that different aggregators are needed for expenditure on imported goods and 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.
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spelling CGSpace1546792025-11-06T06:42:49Z Measuring the impacts of global trade reform with optimal aggregators of distortions Laborde Debucquet, David Martin, Will van der Mensbrugghe, Dominique welfare economics reforms trade barriers 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 that different aggregators are needed for expenditure on imported goods and 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. 2011 2024-10-01T14:03:07Z 2024-10-01T14:03:07Z Working Paper https://hdl.handle.net/10568/154679 en Open Access application/pdf International Food Policy Research Institute Laborde Debucquet, David; Martin, Will; van der Mensbrugghe, Dominique. 2011. Measuring the impacts of global trade reform with optimal aggregators of distortions. IFPRI Discussion Paper 1123. https://hdl.handle.net/10568/154679
spellingShingle welfare economics
reforms
trade barriers
Laborde Debucquet, David
Martin, Will
van der Mensbrugghe, Dominique
Measuring the impacts of global trade reform with optimal aggregators of distortions
title 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_short 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
topic welfare economics
reforms
trade barriers
url https://hdl.handle.net/10568/154679
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