Calculation of Ad Valorem Equivalents of Non-Tariff Barriers: A Case Study of 16 RCEP Countries
This chapter provides the calculation of ad valorem equivalents (AVEs) of nontariff barriers, particularly those barriers that increase both the time to import and the time to export goods between two trading partners. The calculation considers the example of 16 member countries of the proposed Regional Comprehensive Economic Partnership (RCEP) agreement. This chapter evaluates the impact of trade facilitation in RCEP countries on their bilateral trade flows and other macroeconomic variables. Using an econometric approach, sectorwide AVEs of the time to import and the time to export have been calculated through the estimation of an augmented version of the gravity model.