Protection for Sale with Imperfect Rent Capturing /

Structurally estimating the Grossman and Helpman (1994) model using coverage ratios that include non-tariff barriers leads to biased parameter estimates. We develop a "protection for sale" theoretical framework consistent with the data, by explicitly allowing for non-tariff barriers. Intr...

Ausführliche Beschreibung

1. Verfasser:

Facchini, Giovanni

Körperschaft:

National Bureau of Economic Research

Weitere Verfasser:

Van Biesebroeck, Johannes, Willmann, Gerald

Format:

Elektronisch E-Book

Sprache:

Englisch

Veröffentlicht:

Cambridge, Mass. National Bureau of Economic Research 2005.

Zusammenfassung:

Structurally estimating the Grossman and Helpman (1994) model using coverage ratios that include non-tariff barriers leads to biased parameter estimates. We develop a "protection for sale" theoretical framework consistent with the data, by explicitly allowing for non-tariff barriers. Introducing partial rent capturing we obtain a testable specification which finds support in the data. Our results suggest that average rent capturing is in the order of 72-75 percent.

Umfang:

1 online resource: illustrations (black and white);

Anmerkungen:

April 2005.

Schlagworte:

Trade Policy • International Trade Organizations