A Meta-Analysis of the Impact of Technical Barriers to Trade

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Date
2012-01-01
Authors
Li, Yuan
Beghin, John
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Economics

The Department of Economic Science was founded in 1898 to teach economic theory as a truth of industrial life, and was very much concerned with applying economics to business and industry, particularly agriculture. Between 1910 and 1967 it showed the growing influence of other social studies, such as sociology, history, and political science. Today it encompasses the majors of Agricultural Business (preparing for agricultural finance and management), Business Economics, and Economics (for advanced studies in business or economics or for careers in financing, management, insurance, etc).

History
The Department of Economic Science was founded in 1898 under the Division of Industrial Science (later College of Liberal Arts and Sciences); it became co-directed by the Division of Agriculture in 1919. In 1910 it became the Department of Economics and Political Science. In 1913 it became the Department of Applied Economics and Social Science; in 1924 it became the Department of Economics, History, and Sociology; in 1931 it became the Department of Economics and Sociology. In 1967 it became the Department of Economics, and in 2007 it became co-directed by the Colleges of Agriculture and Life Sciences, Liberal Arts and Sciences, and Business.

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1898–present

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  • Department of Economic Science (1898–1910)
  • Department of Economics and Political Science (1910-1913)
  • Department of Applied Economics and Social Science (1913–1924)
  • Department of Economics, History and Sociology (1924–1931)
  • Department of Economics and Sociology (1931–1967)

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Abstract

A meta-analysis explains the variation in estimated trade effects of technical barriers to trade broadly defined, using available estimates from the empirical international trade literature, and accounting for data sampling and methodology differences. Agriculture and food industries tend to be more impeded by these barriers than other sectors. SPS regulations on agricultural and food trade flows from developing exporters to high-income importers tend to impede trade. Not controlling for “multilateral resistance” barriers increase the likelihood to overstate the trade impeding effect of technical measures and not accounting for their potential endogeneity with trade does the opposite. Studies using direct maximum residue limits tend to find more trade impeding effects than other measures and clearer policy implications. Other technical measures proxies tend to muddle results and increase the likelihood of inconclusive results and few policy implications.

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This is a working paper of an article from Journal of Policy Modeling 34 (2012): 497, doi:10.1016/j.jpolmod.2011.11.001

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