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Regulatory harmonization in the ASEAN region: The effects of applying different types of non-tariff measures

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  • Webb, Mike
  • Strutt, Anna
  • Walmsley, Terrie

Abstract

This paper explores the impact of regulatory harmonization on non-tariff measures (NTMs) in six major ASEAN countries (Singapore Malaysia, Indonesia, Thailand, Viet Nam and the Philippines). Our analysis is based on econometric estimates of the impact of different types of NTMs applied by these major ASEAN members obtained in a gravity model framework. Our econometric estimates identify the types of NTMs that are found to have significant negative effects on trade; on both imports of products sold for intermediate production and those sold to final consumers in these ASEAN countries. We explore the effects of regulatory harmonization by simulating the effects of changing – at the product line (HS 6 digit) level - NTMs in major ASEAN markets so that the NTM regime of each major ASEAN member aligns with that of the major ASEAN member that applies the least trade restricting regulatory regime in a particular sector. The expected overall trade effect of changes in the types of NTMs applied as a result of this regulatory harmonization is calculated using our estimates of the trade effects of different types of NTMs. To enable general equilibrium interactions and provide estimates of welfare effects, we incorporate our estimates of the effect of regulatory harmonization into the IESC model, which is a modified version of the GTAP model, using its own more detailed database alongside the GTAP version 9 database.

Suggested Citation

  • Webb, Mike & Strutt, Anna & Walmsley, Terrie, 2019. "Regulatory harmonization in the ASEAN region: The effects of applying different types of non-tariff measures," Conference papers 333045, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:333045
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    References listed on IDEAS

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    1. Mike Webb & John Gibson & Anna Strutt, 2019. "Market access implications of non‐tariff measures: Estimates for four developed country markets," The World Economy, Wiley Blackwell, vol. 42(2), pages 376-395, February.
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    9. Thomas W. Hertel & Terrie Walmsley & Ken Itakura, 2005. "Dynamic Effects Of The "New Age" Free Trade Agreement Between Japan And Singapore," World Scientific Book Chapters, in: Philippa Dee & Michael Ferrantino (ed.), Quantitative Methods For Assessing The Effects Of Non-Tariff Measures And Trade Facilitation, chapter 18, pages 483-523, World Scientific Publishing Co. Pte. Ltd..
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    1. Viktor Shestak & Viktor Konstantinov & Vladislav Govorov & Evgenia Budko & Oleg Volodin, 2022. "Harmonization of Russian supply chain management standards with EU requirements," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(4), pages 759-777, August.

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