the 42 GTAP merchandise sectors. We consider the simple average of underlying HS 6 codes in each
GTAP sector. Due to limited data, Kee, Nicita, and Olarreaga (2005) do not make NTB estimates
for Korea, Singapore, and Taiwan. To fill in the data, we assume that Korean NTBs are the same as
Japan’s, that Singaporean NTBs are the same as Hong Kong’s, and that Taiwanese NTBs are the same as
Malaysia’s.
Kee, Nicita, and Olarreaga (2005) created relatively current estimates of ad valorem equivalents of
NTBs, but they did not reach into earlier periods. Our method requires us to compare the changes in
policy instruments, like NTBs, from past to present. Resource and data limitations rule out replicating
the Kee, Nicita, and Olarreaga (2005) analysis to estimate ad valorem equivalents of NTBs for the “past”
(i.e., 1994 or earlier). However, some estimates of ad valorem equivalents of NTBs for the past have been
made; we use these to derive past ad valorem tariff equivalents of NTBs based on the more current Kee,
Nicita, and Olarreaga (2005) estimates. Specifically, we create a concordance between “past” estimates
of ad valorem equivalents of NTBs by sector with corresponding “present” estimates, drawing on several
sources: Linkins and Acre (2004) for the United States; Messerlin (2001) for the European Union;
Shuguang, Yansheng, and Zhongxin (1998) for China; and Sazanami, Urata, and Kawai (1995) for
Japan. The concordance reveals examples of the change in ad valorem equivalents of NTBs from “past”
to “present.” From these few examples we estimate one rate of change for all NTB protection in every
sector and every country from “past” to “present”—namely a 51 percent decline in the level of protection.
Admittedly, this is a very rough approach, but the data limitations for NTBs left us with few options; we
thus caution our readers that any estimates concerning NTB liberalization and the impact thereof should
be taken with a tablespoon of salt.
Table A.47 shows our concordance between the various “past” estimates of NTBs and GTAP
sectors. The concordance between the Japanese (Sazanami, Urata, and Kawai 1995) and Chinese
(Shuguang,Yansheng, and Zhongxin 1998) estimates were made by matching similarly named sectors.
The EU concordance was created loosely from the International Standard Industrial Classification (ISIC)
codes listed in Messerlin (2001). For the US concordance we first matched similar sectors from the
early estimates (Linkins and Acre 1994) to later estimates made with the same methodology (USITC
2004). The later estimates were made using the United States International Trade Commission (USITC)
classification system. We matched the US estimates with a concordance created by Donnelly et al. (2004)
from the USITC classification system first to GTAP database 4 and earlier codes, and then to GTAP
database 7 codes with a separate concordance from Donnelly et al. (2004).
The US and EU estimates have a time dimension; specifically, there are estimates of ad valorem
equivalents of NTBs from about 1990 and 2000. The Chinese and Japanese estimates are for only one
year. To estimate an average change in tariff equivalents of NTBs we consider the change across the US
44
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