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Impact of nontariff measures on firms in Tunisia

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  • Leila Baghdadi
  • Sonia Ben Kheder
  • Hassen Arouri

Abstract

This paper analyzes the effect of nontariff measures (NTMs) on firms in Tunisia. It draws a precise picture of NTMs’ effects on firms’ imports. We use firm‐level data to take into account firm heterogeneity. We explore the impact of NTMs on small vs. medium and large firms. We also consider the differentiated impact of NTMs. Some measures have informational content and help reduce information asymmetries. When the endogeneity issue of NTMs is controlled for, results show an overall positive impact of NTMs on imports. They provide evidence that NTMs are more beneficial to the imports of medium and large firms. Moreover, NTMs with informational content have an import enhancing effect. An extended analysis separating importing and exporting firms from those solely importing suggests that both types of firms benefit from the positive effects of NTMs. This result highlights the need to assist small firms facing NTMs. Furthermore, some NTMs with informational content should be addressed carefully and not considered only as barriers to trade to be eliminated. Instead, harmonization efforts between countries can be a better policy.

Suggested Citation

  • Leila Baghdadi & Sonia Ben Kheder & Hassen Arouri, 2019. "Impact of nontariff measures on firms in Tunisia," Review of Development Economics, Wiley Blackwell, vol. 23(4), pages 1562-1579, November.
    • Handle: RePEc:bla:rdevec:v:23:y:2019:i:4:p:1562-1579
    DOI: 10.1111/rode.12600
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    Cited by:

    1. Inmaculada Martínez Zarzoso & Mona Said & Chahir Zaki, 2021. "Trade policy and input liberalization: The effect on Egyptian firms’ productivity," Review of Development Economics, Wiley Blackwell, vol. 25(3), pages 1305-1325, August.
    2. Kruse, Hendrik W. & Martínez-Zarzoso, Inma & Baghdadi, Leila, 2021. "Standards and political connections: Evidence from Tunisia," Journal of Development Economics, Elsevier, vol. 153(C).
    3. Marcio Cruz & Leila Baghdadi & Hassen Arouri, 2022. "High growth firms and trade linkages: Imports do matter," Small Business Economics, Springer, vol. 59(1), pages 79-92, June.

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