CEPII, Recherche et Expertise sur l'economie mondiale
Tariff Liberalization and Trade Integration of Emerging Countries

Anne-Célia Disdier
Lionel Fontagné
Mondher Mimouni

 Highlights :
  • We analyze the interactions between tariff cuts and growth in emerging countries’ exports over the 1996-2006 period
  • We consider both the extensive and intensive margins of trade
  • Our econometric estimations suggest that only the growth in differentiated goods’ exports at the intensive margin comes from tariff cuts

 Abstract :
This paper investigates how tariff liberalization has affected exporting in emerging countries. We use a highly disaggregated (6 digit level of the harmonized system – HS – classification) bilateral measure of market access to compare tariffs applied in 1996 and 2006, which includes the timing of the Uruguay Round and episodes of bilateral liberalization. Our econometric estimations consider impacts on both the extensive and intensive margins of trade. The reduced tariffs imposed on emerging countries have contributed to growth in their exports of differentiated goods at the intensive margin; they have not affected the probability of recording new flows. Growth in emerging countries’ exports at the extensive margin of trade has been due mainly to an upward shift in their comparative advantage and improvements to their infrastructure.

 Keywords : tariffs | trade liberalization | emerging countries | margins of trade

 JEL : F13, F15
CEPII Working Paper
N°2013-36, November 2013

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 Fields of expertise

Emerging Countries