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Impact of Regulatory Burdens on International Trade

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  • Nabeshima, Kaoru
  • Obashi, Ayako

Abstract

In this paper, we develop the additional compliance requirement indicator (ACRI) to quantify the extra regulatory requirements that an exporter may face when serving the foreign country's market. The higher the value of ACRI, the greater the difference between the sets of technical measures in the destination and origin countries. Employing the ACRI, we estimate the impact on trade of regulatory burdens via product-level bilateral gravity equations. We find a significant negative impact of regulatory burdens on bilateral trade for a full sample, but the estimated trade effects vary across sectors and depend on the development levels of the trading countries.

Suggested Citation

  • Nabeshima, Kaoru & Obashi, Ayako, 2021. "Impact of Regulatory Burdens on International Trade," Journal of the Japanese and International Economies, Elsevier, vol. 59(C).
    • Handle: RePEc:eee:jjieco:v:59:y:2021:i:c:s0889158320300575
    DOI: 10.1016/j.jjie.2020.101120
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    Cited by:

    1. Nabeshima, Kaoru & Obashi, Ayako & Kim, Kunhyui, 2021. "Impacts of additional compliance requirements of regulations on the margins of trade," Japan and the World Economy, Elsevier, vol. 59(C).
    2. Weixin Yang & Hao Gao & Yunpeng Yang & Jiacheng Liao, 2022. "Embodied Carbon in China’s Export Trade: A Multi Region Input-Output Analysis," IJERPH, MDPI, vol. 19(7), pages 1-16, March.

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    More about this item

    Keywords

    Non-tariff measures; technical regulations; compliance requirement; international trade; technical barriers to trade (TBT); sanitary and phytosanitary standard (SPS);
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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