Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/197322
Authors: 
Jakubik, Adam
Piermartini, Roberta
Year of Publication: 
2019
Series/Report no.: 
WTO Staff Working Paper ERSD-2019-06
Abstract: 
This paper studies how WTO rules and flexibilities shape its members' trade policy responses to import shocks. Guided by a cost benefit analysis model and using a unique database of tariff bindings for all WTO countries over the 1996-2011 period, we show that WTO commitments affect members' trade policy. More stringent bindings reduce the likelihood of responding to import shocks by raising tariffs and increase the likelihood of contingent measures. We argue that this reduces overall trade policy uncertainty. In a counterfactual scenario where WTO members can arbitrarily increase tariffs they are 4.5 times more likely to do so than under current bindings.
Subjects: 
trade agreements
trade policy
trade policy uncertainty
anti-dumping
JEL: 
F13
F14
F53
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size
921.55 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.