A Simple Method to Quantify the ex-ante Effects of “Deep” Trade Liberalization and “Hard” Trade Protection (English)

This paper proposes a simple and flexible econometric approach to quantify ex-ante the “deep” impact of trade liberalization and the “hard” effects of protection with the empirical structural gravity model. Specifically, the paper argues that the difference between the estimates of border indicator variables for affected and non-affected countries can be used as a comprehensive measure of the change in bilateral trade costs in response to a hypothetical...
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Citation

Larch,Mario; Tan,Shawn Weiming; Yotov,Yoto Valentinov.

A Simple Method to Quantify the ex-ante Effects of “Deep” Trade Liberalization and “Hard” Trade Protection (English). Policy Research working paper|no. WPS 9791 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/899351633373629469

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