Choked by Red Tape? The Political Economy of Wasteful Trade Barriers
Choked by Red Tape? The Political Economy of Wasteful Trade Barriers
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DOI:
10.3386/w24739
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发表时间:
2018
期刊:
影响因子:
--
通讯作者:
J. Neary
中科院分区:
文献类型:
--
作者:
G. Maggi;Monika Mrázová;J. Neary
Abstract 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 the political-economic environment and product characteristics affect RTBs. Taking into account the endogenous response of RTBs is crucial to understanding the impact of reductions in tariffs and natural trade costs on the extensive and intensive margins of trade, as well as on welfare. Moreover, the availability of RTBs affects in important ways the tariff commitments that are specified in a trade agreement.