Skip to main content
SpringerLink
Log in

Effects of Trade Barriers on Development and Growth

  • Living reference work entry
  • First Online:
Reduced Inequalities

Part of the book series: Encyclopedia of the UN Sustainable Development Goals ((ENUNSDG))

  • 48 Accesses

Definition

A basic definition of trade barriers would refer to all factors that may influence how many goods and services are shipped across international borders (Feenstra and Taylor 2017a). This definition is quite neutral, and it needs to be understood that the word “barrier” has a negative connotation, which means that a trade barrier would be any instrument that limits or restrict trade between countries, as opposed to free trade. It is generally accepted that free trade is good for productivity and economic growth, but it is also true that most countries apply some sort of trade restriction, for different reasons.

Introduction

Since the end of World War II and up to very recently, the world has experienced high levels of trade liberalization, which is defined as “a move towards freer trade through the reduction of tariff and other barriers” (Lee 2005). Also up to recent times, it has been widely recognized that trade liberalization can stimulate economic growth, job creation,...

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution

Institutional subscriptions

References

  • Amadeo K (2018) How trump is changing NAFTA. The Balance, 29 August. Available at https://www.thebalance.com/donald-trump-nafta-4111368. Accessed 31.08.2018

    Google Scholar 

  • Bellmann C, Tipping AV (2015) The role of trade and trade policy in advancing the 2030 development agenda. International Development Policy 6.2. https://doi.org/10.4000/poldev.2149

  • Blonigen BA, Liebman BH, Pierce JR, Wilson WW (2012) Are all trade protection policies created equal? Empirical evidence for nonequivalent market power effects of tariffs and quotas. In: Finance and economics discussion series, 2012–17. Divisions of Research & Statistics and Monetary Affairs. Federal Reserve Board, Washington, DC

    Google Scholar 

  • Carbaugh RJ (2017) International Economics, 6th edn. Cengage Learning, Boston

    Google Scholar 

  • Caves RE, Frankel JA, Jones RW (2007) World trade and payments. An introduction, 10th edn. Pearson International Edition, Boston

    Google Scholar 

  • Center for International Environmental Law (2005) Eco-labeling standards, green procurement and the WTO: significance for World Bank borrowers. March 2005

    Google Scholar 

  • Centre for European Reform (2016) The economic consequences of leaving the EU. The final report of the CER commission on Brexit 2016

    Google Scholar 

  • Chaitrong W (2018) Asean urged to champion free trade. July 3. The Nation. Available at http://www.nationmultimedia.com/detail/Economy/30349163. Accessed 10.09.208

  • Duran-Lima J, de Miguel C, Pereira M, Veliz G (2010) Assessing the impact of non-tariff barriers during the global crisis: the experience of Argentina, Ecuador and Venezuela. Global Trade Analysis Project (GTAP). Available at https://www.gtap.agecon.purdue.edu/resources/download/5041.pdf. Accessed 18.07.2018

  • Ederington J, Ruta M (2016) Non-tariff measures and the world trading system. World Bank Group, Trade and Competitiveness Global Practice Group, Policy Research working paper 7661. May 2016

    Google Scholar 

  • Emmerson C, Johnson P, Mitchell I (2016) The EU single market: the value of membership versus access to the UK. Institute for Fiscal Studies. (August 2016)

    Google Scholar 

  • European Commission (2012) Why the European Union is an essential trade partner. 9/10/2012

    Google Scholar 

  • European Commission (2018) The European Union and its trade partners. Fact sheets on the European Union – 2018

    Google Scholar 

  • Feenstra RC, Taylor AM (2017a) International trade, 4th edn. Worth Publishers/Macmillan Learning, New York

    Google Scholar 

  • Feenstra RC, Taylor AM (2017b) International economics, 4th edn. Worth Publishers/Macmillan Learning, New York

    Book  Google Scholar 

  • Fernandez RM (2018) Conflicting energy policy priorities in EU energy policy. J Environ Stud Sci 8(3):239–248. https://doi.org/10.1007/s13412-018-0499-0

    Article  Google Scholar 

  • Fugazza M (2013) The economics behind non-tariff measures: theoretical insights and empirical evidence. UNCTAD. Policy Issues in International Trade and Commodities. Study series no. 57

    Google Scholar 

  • Gilbert CL (2011) Chapter 11: International commodity agreements and their current relevance for grains price stabilization. In: Prakash A (ed) Safeguarding food security in volatile global markets. Food and Agriculture Organisation (FAO) of the United Nations, Rome, pp 202–230

    Google Scholar 

  • Hansen JD, Sala D (2013) On the equivalence of tariffs and quotas for customs unions. Discussion papers on business and economics, no. 11/2013. University of Southern Denmark

    Google Scholar 

  • Haveman J, Thursby JG (2000) The impact of tariff and non-tariff barriers to trade in agricultural commodities: a disaggregated approach. Available at https://pdfs.semanticscholar.org/02bf/b5c26d878b2698843be13eb81f428b919800.pdf. Accessed 12.09.2018

  • Henson S, Loader R (2001) Barriers to agricultural exports from developing countries: the role of sanitary and phytosanitary requirements. World Dev 29(1):85–102

    Article  Google Scholar 

  • Hübner K, Deman A-S, Balik T (2017) EU and trade policy-making: the contentious case of CETA. J Eur Integr 39(7):843–857. https://doi.org/10.1080/07036337.2017.1371708

    Article  Google Scholar 

  • Hwang CW, Lim SS (2017) Effect of non-tariff measures on international tea trades. Journal of Korea Trade 21(4):309–323

    Article  Google Scholar 

  • Jørgensen JG, Schröder PJH (2003) Effects of tariffication: Tariffs and quotas under Monopolistic Competition, German Institute for Economic Research. Available at https://pdfs.semanticscholar.org/c5ad/aeff6f7f7072fb2511a407e043f825818eac.pdf. Accessed 11.09.2018

  • Keho Y (2017) The impact of trade openness on economic growth: The case of Cote d’Ivoire. Cogent Economics & Finance 5(2017). https://doi.org/10.1080/23322039.2017.1332820

  • Koczan Z, Plekhanov A (2013) How important are non-tariff barriers? Complementarity of infrastructure and institutions of trading partners. European Bank for Reconstruction and Development, Working paper no. 159. July 2013

    Google Scholar 

  • Kraatz S (2014) The Transatlantic Trade and Investment Partnership (TTIP) and Labour. European Parliament Briefing. Employment and Social Affairs. PE 536(315)

    Google Scholar 

  • Kreinin ME (2006) International economics. A policy approach, 10th edn. Thomson Higher Education, Mason

    Google Scholar 

  • Lee E (2005) Trade liberalization and employment. UNDESA (United Nations Department of Economic and Social Affairs). Working paper no. 5. ST/ESA/2005/DWP/5. October 2005

    Google Scholar 

  • Ljunggren D, Rampton R (2018) Trade war turns Canada’s G7 summit into six-plus-Trump. Reuters, Business News, 4 June. Available at https://www.reuters.com/article/us-g7-summit/trade-war-turns-canadas-g7-summit-into-six-plus-trump-idUSKCN1J01UE. Accessed 29.06.2018

  • Matschke X (2003) Tariff and quota equivalence in the presence of asymmetric information. J Int Econ 61(2003):209–223

    Article  Google Scholar 

  • Mercurio B (2013) Trade liberalization and poverty reduction. Complimentary or contradictory aims? In Nadakavukaren Schefer, K. (ed.) Poverty and the international ecomonic legal system. Duties to the world’s poor. Cambridge University Press, pp 66–78

    Google Scholar 

  • Micklethwait J, Taley M, Jacobs J (2018) Trump threatens to pull US out of WTO if It doesn’t ‘Shape Up’. Bloomberg, 30 August. Available at https://www.bloomberg.com/news/articles/2018-08-30/trump-says-he-will-pull-u-s-out-of-wto-if-they-don-t-shape-up. Accessed 12.09.2018

  • Naumann E (2001) Eco-labelling: overview and implications for developing countries. Development Policy Research Unit. University of Cape Town. Policy brief no. 01/P19. October:2001

    Google Scholar 

  • OECD (2010) Trade and Economic Effects of Responses to the Economic Crisis. https://doi.org/10.1787/9789264088436-en

  • OECD, ILO, World Bank and WTO (2010) Seizing the benefits of trade for employment and growth. Final report, Prepared for submission to the G20 Summit meeting in Seoul, Korea, November 2010.

    Google Scholar 

  • OECD (2011) Trade liberalisation: Boosting employment and growth. January 2011

    Google Scholar 

  • OECD (2016) The economic impact oef local content requirements. Trade Policy Note, February 2016

    Google Scholar 

  • Sachdeva, S. (2017) WTO failure raises concerns about decline. Newsroom, 21st December. Available at https://www.newsroom.co.nz/2017/12/20/70417/wto-failure-raises-concerns-about-decline. Accessed 12.09.2018

  • Schor A (2016) Is trade good for development? The elusive question. Brazilian Political Science Review 10(2). https://doi.org/10.1590/1981-38212016000200008

  • Shirotori M (2016) Non-tariff barriers can connect trade to sustainable development. International Institute for Sustainable Development. Available at http://sdg.iisd.org/commentary/guest-articles/non-tariff-barriers-can-connect-trade-to-sustainable-development/. Accessed 12.09.2018

  • Stratfor Worldview (2018) The moment for Mercosur’s Trade Agenda is now. July 25th. Assessments. Available at https://worldview.stratfor.com/article/moment-mercosurs-trade-agenda-now. Accessed 10.09.2018

  • Thirlwall AP, Pacheco-Lopez P (2017) Economics of development, 10th edn. Palgrave Macmillan, London

    Book  Google Scholar 

  • Verbruggen H, Kuik O, Bennis M (1995) Environmental regulations as trade barriers for developing countries: eco-labelling and the Dutch cut flower industry. CREED working paper no 2, July 1995

    Google Scholar 

  • Wang F (2011) Who bears the burden of voluntary export restraints? Prague Economic Papers 3(2011):216–231

    Article  Google Scholar 

  • Whalley J, Yao D (2016) Assessing the effects of the Multifibre Arrangement after its termination. CIGI papers, no. 93 – March 2016. Centre for International Governance Innovation

    Google Scholar 

  • WITS (2010) Forms of import tariffs. WITS Online Help, The World Bank. Available at https://wits.worldbank.org/wits/wits/witshelp/content/data_retrieval/p/intro/C2.Forms_of_Import_Tariffs.htm. Accessed 10 Oct 2018

Download references

Author information

Authors and Affiliations

  1. Department of Social and Political Science. Economics Programmes, University of Chester, Chester, UK

    Rosa Maria Fernandez

Authors
  1. Rosa Maria Fernandez
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Rosa Maria Fernandez .

Editor information

Editors and Affiliations

  1. European School of Sustainability, Hamburg University of Applied Sciences, Hamburg, Hamburg, Germany

    Walter Leal Filho

  2. Center for Neuroscience & Cell Biology, University of Coimbra, Coimbra, Portugal

    Anabela Marisa Azul

  3. Faculty of Engineering and Architecture, Passo Fundo University Faculty of Engineering and Architecture, Passo Fundo, Brazil

    Luciana Brandli

  4. HAW Hamburg, Hamburg, Hamburg, Germany

    Amanda Lange Salvia

  5. Istinye University, Istanbul, Turkey

    Pinar Gökcin Özuyar

  6. International Centre for Thriving, University of Chester, Chester, UK

    Tony Wall

Section Editor information

  1. School of Economics, Finance and Banking, Universiti Utara Malaysia, Sintok, Malaysia

    Md Mahmudul Alam

Rights and permissions

Reprints and permissions

Copyright information

© 2021 Springer Nature Switzerland AG

About this entry

Check for updates. Verify currency and authenticity via CrossMark

Cite this entry

Fernandez, R.M. (2021). Effects of Trade Barriers on Development and Growth. In: Leal Filho, W., Azul, A.M., Brandli, L., Lange Salvia, A., Özuyar, P.G., Wall, T. (eds) Reduced Inequalities. Encyclopedia of the UN Sustainable Development Goals. Springer, Cham. https://doi.org/10.1007/978-3-319-71060-0_24-1

Download citation

  • DOI: https://doi.org/10.1007/978-3-319-71060-0_24-1

  • Received:

  • Accepted:

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-71060-0

  • Online ISBN: 978-3-319-71060-0

  • eBook Packages: Springer Reference Earth and Environm. ScienceReference Module Physical and Materials ScienceReference Module Earth and Environmental Sciences

Publish with us

Policies and ethics

Search

Navigation