Market access in global and regional trade

B-Tier
Journal: Regional Science and Urban Economics
Year: 2012
Volume: 42
Issue: 6
Pages: 1037-1052

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper develops a method to measure difficulties in market access over a large set of industries and countries (both developing and developed), during the period 1980–2006. We use a micro-founded heterogeneous-consumers model to estimate the impact of national borders on global and regional trade flows. Results show that difficulties faced by developing countries' exporters in accessing developed markets are 50% higher than those faced by Northern exporters. These difficulties have however experienced a noticeable fall since 1980 in all industries. It is twenty three times easier to enter Northern and Southern markets for a Southern country exporter in 2006 than in 1980. Expressed in tariff-equivalent, the level of protection implied when crossing a border fell from 180% to 89% for this same sample. While tariffs still have an influence on trade patterns, they do not seem to explain an important part of the border effect. Last, our theory-based measure offers a renewal of the assessment of the impact of regional trading arrangements. The EU, NAFTA, ASEAN and MERCOSUR agreements all tend to reduce the estimated degree of market fragmentation within those zones, with the expected ranking between their respective trade impact.

Technical Details

RePEc Handle
repec:eee:regeco:v:42:y:2012:i:6:p:1037-1052
Journal Field
Urban
Author Count
3
Added to Database
2026-01-25