Tariff Imposition and Manufacturing Trade: A Comparative Study on the Economies of North and South

Abstract

The chapter empirically investigates the effects of tariff imposition on manufacturing trade comparatively in the north and south economies across the globe during the last three decades. Traditionally north and south represent the developed and developing world, respectively. Along with the volume and balance of trade, the study accounts for both export and import separately to observe their dynamisms under the tariff regime and makes comparisons between developing and developed groups of countries. Using World Development Indicators (2019) and World Integrated Trade Solutions (2019) databases on 77 developing and 48 developed nations for 1991–2018, the robust difference panel generalized method of moments estimates imply that impositions of domestic tariffs significantly reduce manufacturing trade in both groups of countries; however, developing countries experience this effect in a greater extent.

Citation

Sinha, M., Rai, M.K., Rai, M.K. and Dutta, A. (2021), "Tariff Imposition and Manufacturing Trade: A Comparative Study on the Economies of North and South", Das, R.C. (Ed.) Global Tariff War: Economic, Political and Social Implications, Emerald Publishing Limited, Leeds, pp. 85-95. https://doi.org/10.1108/978-1-80071-314-720211007