MEASURING THE RESTRICTIVENESS OF TRACE POLICY

This article Provides an introduction to the trade restrictiveness ind ex (TRI), which equals the uniform; tariff that is welfare equivalent to a given pattern of trade protection. Unlike standard measures of tr ade restrictiveness, the TRI has a solid theoretical basis, can incorp orate both tariffs and quantitative restrictions, and can be adapted t o construct the trade policy equivalent of domestic distortions. The a rticle compares a number of applications and describes procedures for operationalizing the TRI on a personal computer. The authors conclude that the TRI has considerable potential in empirical work.