Advanced Search
MyIDEAS: Login to save this paper or follow this series

Estimating the bilateral impact of non-tariff measures (NTMs)

Contents:

Author Info

  • Michael Bratt
Registered author(s):

    Abstract

    The present paper seeks to estimate how the impact of NTMs on trade can vary across export-import pairs by adopting a Heckman two-stage procedure of a gravity model that includes so-called comparative advantage variables. These variables consist of factor endowments of each trading partner and serve to identify the country-specific effects of NTMs. Covering data for the early 2000s, regressions are run at the 6-digit level of the harmonised system and the estimated results are converted into ad-valorem equivalents (AVEs). The results suggest that a substantial amount of NTMs facilitate rather than impede trade, but that the overall impact on trade is nonetheless negative in the majority of cases. Furthermore, they underline the importance of conditioning conclusions on trading partners and products and demonstrate that the same NTM can have different – and even opposite – effects across exporting countries.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.unige.ch/ses/dsec/repec/files/14011.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by Institut d'Economie et Econométrie, Université de Genève in its series Research Papers by the Institute of Economics and Econometrics, Geneva School of Economics and Management, University of Geneva with number 14011.

    as in new window
    Length: 30 pages
    Date of creation: Jan 2014
    Date of revision:
    Handle: RePEc:gen:geneem:14011

    Contact details of provider:
    Postal: 40 Boulevard du Pont-d'Arve, CH-1211 Geneva 4, Switzerland
    Phone: +41 22 379 8263
    Fax: +41 22 379 82 93
    Email:
    Web page: http://www.unige.ch/gsem/dsec/index.html

    Related research

    Keywords: Bilateral trade flows; non-tariff measures; Heckman two-stage procedure;

    This paper has been announced in the following NEP Reports:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Elhanan Helpman & Marc Melitz & Yona Rubinstein, 2008. "Estimating Trade Flows: Trading Partners and Trading Volumes," The Quarterly Journal of Economics, MIT Press, vol. 123(2), pages 441-487, 05.
    2. Hiau LooiKee & Alessandro Nicita & Marcelo Olarreaga, 2009. "Estimating Trade Restrictiveness Indices," Economic Journal, Royal Economic Society, vol. 119(534), pages 172-199, 01.
    3. Kee, Hiau Looi & Nicita, Alessandro & Olarreaga, Marcelo, 2004. "Import Demand Elasticities and Trade Distortions," CEPR Discussion Papers 4669, C.E.P.R. Discussion Papers.
    4. Leamer, Edward E., 1990. "Latin America as a target of trade barriers erected by the major developed countries in 1983," Journal of Development Economics, Elsevier, vol. 32(2), pages 337-368, April.
    5. Xiaohua Bao & Larry D. Qiu, 2012. "How Do Technical Barriers to Trade Influence Trade?," Review of International Economics, Wiley Blackwell, vol. 20(4), pages 691-706, 09.
    6. Baier, Scott L. & Bergstrand, Jeffrey H., 2009. "Bonus vetus OLS: A simple method for approximating international trade-cost effects using the gravity equation," Journal of International Economics, Elsevier, vol. 77(1), pages 77-85, February.
    7. Sven M. Anders & Julie A. Caswell, 2007. "Standards as Barriers Versus Standards as Catalysts: Assessing the Impact of HACCP Implementation on U.S. Seafood Imports," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(2), pages 310-321.
    8. James E. Anderson & Eric van Wincoop, 2000. "Gravity with Gravitas: A Solution to the Border Puzzle," Boston College Working Papers in Economics 485, Boston College Department of Economics.
    9. Leland, Hayne E, 1979. "Quacks, Lemons, and Licensing: A Theory of Minimum Quality Standards," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1328-46, December.
    10. Marette, Stephan & Beghin, John C., 2010. "Are Standards Always Protectionist?," Staff General Research Papers 12826, Iowa State University, Department of Economics.
    11. Disdier, Anne-Celia & Fontagne, Lionel & Mimouni, Mondher, 2008. "AJAE Appendix: The Impact of Regulations on Agricultural Trade: Evidence from the SPS and TBT Agreements," American Journal of Agricultural Economics Appendices, Agricultural and Applied Economics Association, vol. 90(2), May.
    12. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    13. Pramila Crivelli & Jasmin Gröschl, 2012. "The Impact of Sanitary and Phytosanitary Measures on Market Entry and Trade Flows," Ifo Working Paper Series Ifo Working Paper No. 136, Ifo Institute for Economic Research at the University of Munich.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:gen:geneem:14011. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.