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Technical regulations and specialization in international trade

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  • Essaji, Azim

Abstract

It is widely acknowledged that while technical regulations can improve welfare and facilitate markets, they can also impede trade. The trade impeding effects of technical regulations are especially worrisome for developing countries: they frequently lack the human and capital resources necessary to satisfy technical measures, and thus are more likely to be excluded from markets by technical measures. This paper uses highly disaggregated US data on agricultural, mining and manufacturing imports to examine the impact of technical regulations on trade patterns. Using instrumental variables estimation to correct for the potential endogeneity of technical regulations, the analysis suggests that technical regulations substantially impinge on poor countries' exports: their weaker capacities to satisfy technical regulations lead them to specialize away from industries with heavier regulatory burdens.

Suggested Citation

  • Essaji, Azim, 2008. "Technical regulations and specialization in international trade," Journal of International Economics, Elsevier, vol. 76(2), pages 166-176, December.
  • Handle: RePEc:eee:inecon:v:76:y:2008:i:2:p:166-176
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    References listed on IDEAS

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    Cited by:

    1. Fontagné, Lionel & Orefice, Gianluca, 2018. "Let’s try next door: Technical Barriers to Trade and multi-destination firms," European Economic Review, Elsevier, vol. 101(C), pages 643-663.
    2. repec:bla:worlde:v:40:y:2017:i:1:p:168-181 is not listed on IDEAS
    3. Grant, Jason & Peterson, Everett & Ramniceanu, Radu, 2015. "Assessing the Impact of SPS Regulations on U.S. Fresh Fruit and Vegetable Exports," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 40(1), January.
    4. Eum, Jihyun, 2016. "Food Safety Standards and Quality Upgrading through Import Competition," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235518, Agricultural and Applied Economics Association.
    5. Nordås, Hildegunn Kyvik, 2010. "Trade in goods and services: Two sides of the same coin?," Economic Modelling, Elsevier, vol. 27(2), pages 496-506, March.
    6. Chen, Natalie & Novy, Dennis, 2012. "On the measurement of trade costs: direct vs. indirect approaches to quantifying standards and technical regulations," World Trade Review, Cambridge University Press, vol. 11(03), pages 401-414, July.
    7. Aerni, Philipp, 2013. "Do Private Standards encourage or hinder trade and innovation?," Papers 599, World Trade Institute.
    8. Alessandro Nicita & Marina Murina, 2014. "Trading With Conditions: The Effect Of Sanitary And Phytosanitary Measures On Lower Income Countries’ Agricultural Exports," UNCTAD Blue Series Papers 68, United Nations Conference on Trade and Development.
    9. Siyakiya, Puruweti, 2017. "The impact of technical regulations on trade: Evidence from South Africa," MPRA Paper 76757, University Library of Munich, Germany.
    10. Matthias Beestermöller & Anne-Célia Disdier & Lionel Gérard Fontagné, 2016. "Impact of European Food Safety Border Inspections on Agri-Food Exports: Evidence from Chinese Firms," CESifo Working Paper Series 5840, CESifo Group Munich.
    11. Robert Grundke & Christoph Moser, 2014. "Hidden Protectionism? Evidence from Non-tariff Barriers to Trade in the United States," CESifo Working Paper Series 5142, CESifo Group Munich.
    12. Jouanjean, Marie-Agnes & Maur, Jean-Christophe & Shepherd, Ben, 2011. "Reputation matters: Spillover effects in the enforcement of US SPS measures," MPRA Paper 35270, University Library of Munich, Germany.
    13. Tseng, Eric & Sheldon, Ian, 2015. "Food Processing Firms, Input Quality Upgrading and Trade," 2015 Allied Social Science Association (ASSA) Annual Meeting, January 3-5, 2015, Boston, Massachusetts 189696, Agricultural and Applied Economics Association.
    14. Xiaonan Liu & Hayley Chouinard, 2013. "The Effects of Product Quality on Net Trade," Working Papers 2013-11, School of Economic Sciences, Washington State University.
    15. repec:kap:empiri:v:45:y:2018:i:1:d:10.1007_s10663-016-9347-1 is not listed on IDEAS
    16. Jouanjean, Marie-Agnès & Maur, Jean-Christophe & Shepherd, Ben, 2015. "Reputation matters: Spillover effects for developing countries in the enforcement of US food safety measures," Food Policy, Elsevier, vol. 55(C), pages 81-91.
    17. Nunn, Nathan & Trefler, Daniel, 2014. "Domestic Institutions as a Source of Comparative Advantage," Handbook of International Economics, Elsevier.
    18. repec:ksp:journ5:v:4:y:2017:i:1:p:64-75 is not listed on IDEAS
    19. Keith E. MASKUS & Lei YANG, 2013. "The Impacts of Post-TRIPS Patent Reforms on the Structure of Exports," Discussion papers 13030, Research Institute of Economy, Trade and Industry (RIETI).
    20. Xiaohua Bao & Wei-Chih Chen, 2013. "The Impacts of Technical Barriers to Trade on Different Components of International Trade," Review of Development Economics, Wiley Blackwell, vol. 17(3), pages 447-460, August.
    21. Xiaohua Bao, 2014. "Special Issue: Issues in Asia. Guest Editor: Laixun Zhao," Review of Development Economics, Wiley Blackwell, vol. 18(2), pages 286-299, May.
    22. Mariarosaria Agostino & Federica Demaria & Francesco Trivieri, 2010. "Non-Reciprocal Trade Preferences and the Role of Compliance Costs in the Agricultural Sector: Exports to the EU," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(3), pages 652-679.
    23. Taghouti, Ibtissem & Martinez-Gomez, Victor & Coque, José María Garcia Alvarez, 0. "Exploring Eu Food Safety Notifications On Agro-Food Imports: Are Mediterranean Partner Countries Discriminated?," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 3.
    24. Herz, Benedikt & Varela-Irimia, Xosé-Luís, 2016. "Border Effects in European Public Procurement," MPRA Paper 76401, University Library of Munich, Germany, revised 24 Jan 2017.
    25. Ederington,Josh & Ruta,Michele, 2016. "Non-tariff measures and the world trading system," Policy Research Working Paper Series 7661, The World Bank.

    More about this item

    Keywords

    International trade Technical regulations Comparative advantage Developing countries Non-tariff barriers F13 O24 O19;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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