OECD IMPORTS AND TRADE BARRIERS IN 1983

This paper uses a monopolistic competition model and 1983 cross-country data on trade barriers, trade flows, and manufacturing production to estimate the import-reducing effects of trade barriers. Data on non-tariff barriers come from UNCTAD, and data on tariffs and estimated transport costs are also used. While there is great heterogeneity across industries, the general conclusion is that in 1983 tariffs and transport costs were a more substantial barrier to trade in manufactures between developed countries than were non-tariff barriers. Japan is found to have the highest barriers and the United States is found to have the lowest barriers.