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Beyond the Information Technology Agreement: Harmonisation of Standards and Trade in Electronics

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  • Alberto Portugal‐Perez
  • José‐Daniel Reyes
  • John S. Wilson

Abstract

Product standards can have a dual impact on production and trade costs. Standards may impose additional costs on exporters as it may be necessary to adapt products for specific markets (cost-effect). In contrast, standards can reduce exporters'information costs if they convey information on industrial requirements or consumer tastes that would be costly to collect in the absence of standards (informational-effect). Using a new World Bank database of European standards for electronic products, the authors examine the impact of internationally-harmonized European standards on European Union imports. They find that European Union standards for electronic products that are harmonized to international standards have a positive and significant effect on trade. The results suggest that efforts to promote trade in electronic products could be complemented by steps to promote standards harmonization. This might include, for example, re-starting talks to extend the Information Technology Agreement to non-tariff measures and commitments to harmonize national standards in electronic products.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal The World Economy.

Volume (Year): 33 (2010)
Issue (Month): 12 (December)
Pages: 1870-1897

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Handle: RePEc:bla:worlde:v:33:y:2010:i:12:p:1870-1897

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Cited by:
  1. Mangelsdorf, Axel & Portugal-Perez, Alberto & Wilson, John S., 2012. "Food standards and exports: evidence for China," World Trade Review, Cambridge University Press, vol. 11(03), pages 507-526, July.
  2. Chen, Natalie & Novy, Dennis, 2012. "On the measurement of trade costs: direct vs. indirect approaches to quantifying standards and technical regulations," World Trade Review, Cambridge University Press, vol. 11(03), pages 401-414, July.
  3. Reyes, Jose-Daniel, 2011. "International harmonization of product standards and firm heterogeneity in international trade," Policy Research Working Paper Series 5677, The World Bank.
  4. Céline Carrere & Jaime Melo De, 2011. "Notes on Detecting the Effects of Non Tariff Measures," Working Papers halshs-00553600, HAL.
  5. Kenji Fujiwara, 2011. "Tariffs And Trade Liberalisation With Network Externalities," Australian Economic Papers, Wiley Blackwell, vol. 50(2-3), pages 51-61, 09.

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