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Global value chain integration and non-tariff measures

Author

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  • Garcés, Irene
  • Vogt, Achim

Abstract

This paper investigates the degree to which domestic value added embodied in gross trade determines the formation of non-tariff measures (NTMs) imposed at the border and regulatory differences in technical regulation. We apply a recently developed political economy model of trade policies and global value chains to indicators of NTM restrictiveness. Our results demonstrate that higher domestic value added content in imports lowers policy makers’ incentives to impose trade restrictive NTM policies in a similar way as tariffs. These effects are heterogeneous with respect to sectors and income group of the policy-imposing country.

Suggested Citation

  • Garcés, Irene & Vogt, Achim, 2024. "Global value chain integration and non-tariff measures," Economics Letters, Elsevier, vol. 235(C).
    • Handle: RePEc:eee:ecolet:v:235:y:2024:i:c:s0165176524000028
    DOI: 10.1016/j.econlet.2024.111518
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    More about this item

    Keywords

    Global value chains (GVC); Domestic value added (DVA); Tariffs; Non-tariff measures (NTM); Regulatory differences;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F68 - International Economics - - Economic Impacts of Globalization - - - Policy

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