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Tariff Liberalization and Trade Integration of Emerging Countries
Author(s) -
Disdier AnneCélia,
Fontagné Lionel,
Mimouni Mondher
Publication year - 2015
Publication title -
review of international economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.513
H-Index - 58
eISSN - 1467-9396
pISSN - 0965-7576
DOI - 10.1111/roie.12198
Subject(s) - margin (machine learning) , tariff , international economics , liberalization , economics , bilateral trade , free trade , product (mathematics) , point (geometry) , international trade , business , computer science , geography , china , archaeology , market economy , geometry , mathematics , machine learning
This paper investigates how tariff liberalization has affected exporting at the product‐destination level in emerging countries. We use a highly disaggregated (six‐digit level of the harmonized system— HS —classification) bilateral measure of market access to compare tariffs applied in 1996 and 2006, which includes the timing of the U ruguay Round and episodes of bilateral liberalization. Our econometric estimations consider impacts of tariff cuts on three components of the trade margins: extensive margin of entry (new trade relationships at the product‐destination level), extensive margin of exit (disappearance of existing relationships) and intensive margin of trade (deepening existing relationships). Our main estimates indicate that a reduction of bilateral applied tariffs of 1 percentage point increases the extensive margin of entry by 0.1% and the intensive one by 2.09%, while it reduces the extensive margin of exit by 0.25%.