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Effects of NTMs on the Extensive and Intensive Margins to Trade: The Case of Tunisia and Egypt

Author

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  • Sofiane Ghali

    (ESSECT, University of Tunis)

  • Habib Zitouna
  • Zouhour Karray
  • Slim Driss

Abstract

The last thirty years have witnessed a general liberalization process of merchandize trade flows. Indeed, tariffs have sharply decreased thanks to the multilateral, regional and/or bilateral trade integration agreements. However, concerns have been raised about the use of Non-Tariffs Measures (NTMs) as trade restriction policies. This paper aims to investigate the impact of NTMs on Tunisian and Egyptian imports. In addition to the distinction between different categories of NTMs (Sanitary and Phytosanitary, Technical Barriers to Trade, Export Related measures…), we study the impact of NTMs on the extensive and intensive margins to trade. The extensive margin has two dimensions: the number of varieties imported from each supplier and the number of supplying countries for each product. Using a traditional gravity model of international trade, we show that NTMs have been used more in Egypt than in Tunisia as a trade restriction measure. Moreover, they act on the intensive rather than the extensive margin.

Suggested Citation

  • Sofiane Ghali & Habib Zitouna & Zouhour Karray & Slim Driss, 2013. "Effects of NTMs on the Extensive and Intensive Margins to Trade: The Case of Tunisia and Egypt," Working Papers 820, Economic Research Forum, revised Dec 2013.
    • Handle: RePEc:erg:wpaper:820
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    References listed on IDEAS

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    Cited by:

    1. Leila Baghdadi & Hendrik Kruse & Inma Martínez-Zarzoso, 2015. "An Estimation of Traiff Pass-Through in Tunisia," Working Papers 963, Economic Research Forum, revised Oct 2015.
    2. Kruse, Hendrik W. & Martínez-Zarzoso, Inma & Baghdadi, Leila, 2021. "Standards and political connections: Evidence from Tunisia," Journal of Development Economics, Elsevier, vol. 153(C).
    3. Inma Martínez-Zarzoso & Leila Baghdadi & Hendrik Wiard Kruse, 2016. "Is Tunisian Trade Policy Pro-Poor?," Working Papers 1033, Economic Research Forum, revised Aug 2016.
    4. Najla KAMERGI & Gabriel FIGUEIREDO DE OLIVEIRA, 2021. "Les mesures techniques non tarifaires :quels effets sur les exportations agricoles des pays africains ?," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 54, pages 31-50.
    5. Hendrik W. Kruse & Inma Martínez-Zarzoso & Leila Baghdadi, 2017. "Standards and Market Power: Evidence from Tunisia," Working Papers 1131, Economic Research Forum, revised 08 2017.
    6. El-Haddad, Amirah, 2018. "Exporting for growth: identifying leading sectors for Egypt and Tunisia using the Product Space Methodology," IDOS Discussion Papers 25/2018, German Institute of Development and Sustainability (IDOS).

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