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How Do Technical Barriers to Trade Affect China's Imports?

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  • Xiaohua Bao

Abstract

This research adopts the heterogeneous-firm approach to analyze how technical barriers to trade (TBT) imposed by China affect its imports. The empirical analysis is based on a sample covering China's import control measures (e.g. TBT, tariff, license and quota) of all harmonized system (HS) 4-digit products during the period 1998–2006. A modified two-stage gravity model is used to correct for Heckman selection bias and firm heterogeneity bias. This paper finds that, in general, TBT reduce China's import probability with potential trade partners, but raise the import values with existing trade partners. Further evidence shows that the TBT effects on trade value remain quite stable. However, the TBT effects on trade probability vary a great deal across industries and countries in different time periods.

Suggested Citation

  • Xiaohua Bao, 2014. "How Do Technical Barriers to Trade Affect China's Imports?," Review of Development Economics, Wiley Blackwell, vol. 18(2), pages 286-299, May.
    • Handle: RePEc:bla:rdevec:v:18:y:2014:i:2:p:286-299
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    4. Enkang Li & Mengqiu Lu & Yu Chen, 2020. "Analysis of China’s Importance in “Belt and Road Initiative” Trade Based on a Gravity Model," Sustainability, MDPI, vol. 12(17), pages 1-21, August.
    5. Sivakumaran, Thillai & Sprenger, Philipp & Toth, Michael & Henke, Michael, 2015. "Market Barrier Integrated Approach for Manufacturing Footprint Decision Support," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Kersten, Wolfgang & Blecker, Thorsten & Ringle, Christian M. (ed.), Sustainability in Logistics and Supply Chain Management: New Designs and Strategies. Proceedings of the Hamburg International Conference of Logistics , volume 21, pages 121-151, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    6. Nabeshima, Kaoru & Obashi, Ayako, 2021. "Impact of Regulatory Burdens on International Trade," Journal of the Japanese and International Economies, Elsevier, vol. 59(C).

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