@techreport{NBERw4799, title = "Trade Barriers and Trade Flows across Countries and Industries", author = "Jong-Wha Lee and Phillip Swagel", institution = "National Bureau of Economic Research", type = "Working Paper", series = "Working Paper Series", number = "4799", year = "1994", month = "July", URL = "http://www.nber.org/papers/w4799", abstract = {We use disaggregated data on trade flows, production, and trade barriers for 41 countries in 1988 to examine the political and economic determinants of non-tariff barriers, as well as the impact of protection (both tariff and non-tariff) on trade flows. We use an econometric framework that allows for the simultaneous determination of trade barriers and trade flows. Our results are consistent with political-economy theories of the determinants of protection: even after accounting for industry-specific factors, nations tend to protect industries that are weak, in decline, and threatened by import competition. Countries also give more protection to large industries; these might be thought of as politically important. Nations use tariffs, non-tariff barriers, and exchange rate controls as complementary instruments of protection.}, }