Bernardo S. Blum, Ritabrata Bose and Kunal Dasgupta
2020
Working Paper No
611
Body
We show, theoretically and quantitatively, that the way non-tariff measures (NTMs) are
enforced matter for trade and welfare. If enforcement entails a per shipment cost, in equilibrium
NTMs take the form of an implicit an-valorem tariff and affect both the intensive and extensive
margins of trade. Per shipment costs resulting from NTMs are particularly damaging for
smaller, less productive exporters. We argue that NTMs should be enforced in ways that do not
create per shipment costs.
Key words
Non-tariff measures, Per shipment costs, Enforcement
WP No. 611.pdf
(761.27 KB)
Author(s) Name: Bernardo S. Blum, Ritabrata Bose and Kunal Dasgupta, 2020
Working Paper No : 611
Abstract: We show, theoretically and quantitatively, that the way non-tariff measures (NTMs) are
enforced matter for trade and welfare. If enforcement entails a per shipment cost, in equilibrium
NTMs take the form of an implicit an-valorem tariff and affect both the intensive and extensive
margins of trade. Per shipment costs resulting from NTMs are particularly damaging for
smaller, less productive exporters. We argue that NTMs should be enforced in ways that do not
create per shipment costs.
Keywords: Non-tariff measures, Per shipment costs, Enforcement
WP No. 611.pdf
(761.27 KB)