TY - JOUR
T1 - Measuring the usage of preferential tariffs in the world
AU - Hayakawa, Kazunobu
AU - Kimura, Fukunari
AU - Laksanapanyakul, Nuttawut
N1 - Funding Information:
Acknowledgements We would like to thank two anonymous referees, Tatsuo Hatta, Hiroshi Ohashi, Hiroshi Mukunoki, Arata Kuno, Kozo Kiyota, and the seminar participants at the Asian Growth Research Institute, JETRO Bangkok, Hokkaido University, and the Japan Society of International Economics. This work was supported by JSPS KAKENHI Grant No. 26705002.
Funding Information:
We would like to thank two anonymous referees, Tatsuo Hatta, Hiroshi Ohashi, Hiroshi Mukunoki, Arata Kuno, Kozo Kiyota, and the seminar participants at the Asian Growth Research Institute, JETRO Bangkok, Hokkaido University, and the Japan Society of International Economics. This work was supported by JSPS KAKENHI Grant No. 26705002.
PY - 2018/11/1
Y1 - 2018/11/1
N2 - The preference utilization ratio, i.e., the share of preferential imports out of total imports, has been a popular indicator for measuring the usage of preferential tariffs vis-à-vis tariffs on a most-favored-nation basis. A crucial shortcoming of this measure is the data requirements, particularly for data on imports classified by tariff schemes, which are not available in most countries. This study proposes another measure for preference utilization, termed the “tariff exemption ratio.” This measure is a good proxy for the value of offered preferences by each importing country to the rest of the world. Importantly, it can be computed by employing only publicly available data, such as those provided by the World Development Indicators, for its computations. We can thus calculate this measure for many countries for an international comparison. Our finding is that tariff exemption ratios differ widely across countries.
AB - The preference utilization ratio, i.e., the share of preferential imports out of total imports, has been a popular indicator for measuring the usage of preferential tariffs vis-à-vis tariffs on a most-favored-nation basis. A crucial shortcoming of this measure is the data requirements, particularly for data on imports classified by tariff schemes, which are not available in most countries. This study proposes another measure for preference utilization, termed the “tariff exemption ratio.” This measure is a good proxy for the value of offered preferences by each importing country to the rest of the world. Importantly, it can be computed by employing only publicly available data, such as those provided by the World Development Indicators, for its computations. We can thus calculate this measure for many countries for an international comparison. Our finding is that tariff exemption ratios differ widely across countries.
KW - Generalized system of preferences
KW - Preferential trade agreements
KW - Tariff revenues
KW - Utilization of preferential arrangements
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U2 - 10.1007/s10290-018-0321-9
DO - 10.1007/s10290-018-0321-9
M3 - Article
AN - SCOPUS:85046728379
VL - 154
SP - 705
EP - 723
JO - Review of World Economics
JF - Review of World Economics
SN - 1610-2878
IS - 4
ER -