Henn, Christian; Gnutzmann-Mkrtchyan, Arevik - 2015 - Manuscript date: February 2015
The WTO's plurilateral Information Technology Agreement (ITA) reduced tariffs to zero on many IT products. This paper … time in trade literatures. Inserting tariffs directly into the gravity equation breaks the ITAs impact down into four … layers. Import demand elasticities are found to be non-linear: Tariff reduction (layer 1) has relatively small impacts, while …