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Handbook of Trade Policy for Development$
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Arvid Lukauskas, Robert M. Stern, and Gianni Zanini

Print publication date: 2013

Print ISBN-13: 9780199680405

Published to Oxford Scholarship Online: January 2014

DOI: 10.1093/acprof:oso/9780199680405.001.0001

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Instruments of Trade Policy

Instruments of Trade Policy

Chapter:
(p.145) Chapter 6 Instruments of Trade Policy
Source:
Handbook of Trade Policy for Development
Author(s):

Geoffrey A. Jehle

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199680405.003.0006

Geoff Jehle examines the primary instruments of national trade policy, often termed commercial policy, including quantitative restrictions (e.g., quotas), tariffs, non-tariff barriers, and export taxes. He focuses on the implications of the various policy instruments for aggregate national social welfare; the distribution of rents among various groups, notably, producers, consumers, and the government; and the relative value of using trade policy instruments versus other means of government intervention to achieve various policy objectives. Jehle demonstrates the distortions that various types of protectionist barriers create in the domestic economy. He highlights the fact that the typical cascading tariff schedule found in many countries implies very high rates of effective protection for producers of finished goods.

Keywords:   Commercial policy, policy instruments, tariffs, quotas, non-tariff barriers, distribution of rents, effective rate of protection, protectionism, national welfare, distortions

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