(24.) For [sigma] = 5 and [sigma] = 10 Anderson and van Wincoop (2004, Table 7) report 1993 U.S.-Canadian trade cost tariff equivalents of 91% and 35%, respectively.
To take the example of the United States, I find that the level of trade costs in the year 2000, expressed as a tariff equivalent, is lowest for Canada at 25%, followed by Mexico at 33%.
Economists often calculate ad valorem tariff equivalents
To allow these barriers to be compared with tariffs, a common approach is to construct ad valorem tariff equivalents of non-tariff barriers.
Such ad valorem tariff equivalents are an essential component in allowing Kee, Nicita, and Olarreaga (2009) to generate estimates of trade restrictiveness indices.
Nontariff measures were approximated by tariff equivalents
. General equilibrium models are as sensitive to assumptions about elasticities as the partial equilibrium models.
A first attempt to do this has been undertaken by Francois and Hoekman (1999), who fit a gravity model to bilateral trade in services flows between the United States and its partner countries to estimate tariff equivalents for each partner country's or region's barriers to trade in services.
Estimated Tariff Equivalents In Traded Services: Gravity-Model Based Regression Method (Percent) Countries/Regions: Average Tariff on Business/Construction Merchandise [*] North America [+] 6.0 8.2 Western Europe 6.0 8.5 Australia and New Zealand 5.0 6.9 Japan 6.0 19.7 China 18.0 18.8 Taiwan n.a.
The first objective is to explain the variation of the level of trade barriers (tariffs and import-quota tariff equivalents).
In those industries where import quotas were the main instrument of protection, their tariff equivalents were used and obtained from recent International Trade Commission reports (U.S.
Hoekman (1995) made a valiant attempt to quantify services protection across sectors by relating coverage ratios to tariff equivalents, however, comprehensive measures such as those provided in manufactures and agriculture have yet to be obtained.
Discrepancies are attributed to protectionist policies; tariff equivalents of these policies are obtained by assuming a constant elasticity of demand function.