OECD IMPORTS AND TRADE BARRIERS IN 1983

This paper uses a monopolistic competition model and 1983 cross-countr y data on trade barriers, trade flows, and manufacturing production to estimate the import-reducing effects of trade barriers. Data on non-t ariff barriers come from UNCTAD, and data on tariffs and estimated tra nsport costs are also used. While there is great heterogeneity across industries, the general conclusion is that in 1983 tariffs and transpo rt costs were a more substantial barrier to trade in manufactures betw een developed countries than were non-tariff barriers. Japan is found to have the highest barriers and the United States is found to have th e lowest barriers.