Choked by Red Tape? The Political Economy of Wasteful Trade Barriers∗ [Preliminary and Incomplete]
نویسندگان
چکیده
Red-tape barriers (RTBs) are an important source of trade costs, but have received little attention in the trade literature. In this paper we take a first step toward a theory of RTBs, and show that their implications can be very different from those of more traditional trade barriers. The model highlights that RTBs have important impacts on the extensive margin of trade, and yields rich comparative-statics predictions on how RTBs are affected by product characteristics and by changes in the economic-political environment, including changes in natural trade costs (“globalization”). Moreover, the availability of RTBs affects in interesting ways the tariff commitments specified in a trade agreement.
منابع مشابه
Choked by Red Tape? The Political Economy of Wasteful Trade Barriers
Red-tape barriers (RTBs) are an important source of trade costs, but have received little scholarly attention. Here we take a first step toward a theory of RTBs, and show that their implications are very different from those of more traditional trade barriers. Our model highlights that RTBs have important impacts on the extensive margin of trade, and yields rich predictions on how changes in th...
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