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Technical regulations and specialization in international trade

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  • Essaji, Azim

Abstract

It is widely acknowledged that while technical regulations can improve welfare and facilitate markets, they can also impede trade. The trade impeding effects of technical regulations are especially worrisome for developing countries: they frequently lack the human and capital resources necessary to satisfy technical measures, and thus are more likely to be excluded from markets by technical measures. This paper uses highly disaggregated US data on agricultural, mining and manufacturing imports to examine the impact of technical regulations on trade patterns. Using instrumental variables estimation to correct for the potential endogeneity of technical regulations, the analysis suggests that technical regulations substantially impinge on poor countries' exports: their weaker capacities to satisfy technical regulations lead them to specialize away from industries with heavier regulatory burdens.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of International Economics.

Volume (Year): 76 (2008)
Issue (Month): 2 (December)
Pages: 166-176

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Handle: RePEc:eee:inecon:v:76:y:2008:i:2:p:166-176

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Web page: http://www.elsevier.com/locate/inca/505552

Related research

Keywords: International trade Technical regulations Comparative advantage Developing countries Non-tariff barriers F13 O24 O19;

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References

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Cited by:
  1. Jouanjean, Marie-Agnes & Maur, Jean-Christophe, 2012. "Reputation matters : spillover effects in the enforcement of US SPS measures," Policy Research Working Paper Series 5935, The World Bank.
  2. Xiaonan Liu & Hayley Chouinard, 2013. "The Effects of Product Quality on Net Trade," Working Papers 2013-11, School of Economic Sciences, Washington State University.
  3. Natalie Chen & Dennis Novy, 2012. "On the measurement of trade costs: direct vs. indirect approaches to quantifying standards and technical regulations," LSE Research Online Documents on Economics 51509, London School of Economics and Political Science, LSE Library.
  4. Keith E. MASKUS & Lei YANG, 2013. "The Impacts of Post-TRIPS Patent Reforms on the Structure of Exports," Discussion papers 13030, Research Institute of Economy, Trade and Industry (RIETI).
  5. Nathan Nunn & Daniel Trefler, 2013. "Domestic Institutions as a Source of Comparative Advantage," NBER Working Papers 18851, National Bureau of Economic Research, Inc.

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