Trade is affected not only by taxes and subsidies that affect producers and consumers of goods, but also, indirectly, by taxes and subsidies that affect nontraded goods or factors of production. The authors show how the Trade Restrictiveness Index (TRI) may be extended to incorporate these types...

Economies benefit from international trade, but joining the world market also exposes them to external shocks. How can the government in Eastern European and developing countries reduce their vulnerability to such shocks? What are appropriate policy responses? The authors examine how external...

The authors introduce a new measure, the Trade Restrictiveness Index, to measure the restrictiveness of a system of trade protection. They propose an alternative to the commonly used ad hoc indexes of trade restrictiveness, such as the trade-weighted average tariff. That measure has no...