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Non-Tariff Measures on Indonesian Tea Products: Do SPS and TBT Impede or Promote the Export?

Author

Listed:
  • Fikri Aldi Dwi Putro

    (Department of Resources and Environmental Economics, Faculty of Economics and Management, IPB University, West Java, Indonesia)

  • Widyastutik

    (Department of Economics, Faculty of Economics and Management, IPB University, West Java, Indonesia
    InterCAFE, International Research Institute for Social, Economics, and Regional Development Studies (IRISERDS) IPB University, West Java, Indonesia)

  • Nia Kurniawati Hidayat

    (Master Program In Economic Planning and Development Policy (MPKP), Universitas Indonesia, Jakarta, Indonesia)

Abstract

Previous studies highlight the heterogeneous effects of Non-Tariff Measures (NTMs) on international trade. This study identifies the enforcement of NTMs and examines the effects on the export performance of Indonesian tea products. This study employed an inventory (coverage ratio) approach and panel regression with the Poisson-Pseudo Maximum Likelihood (PPML) method. The results indicate that 31 out of 36 analyzed destination countries enforce NTMs, with Vietnam imposing the most prevalent ones. Furthermore, SPS measures substantially promote the export of Indonesian tea products, whereas TBT measures show no significant effect. Therefore, the government needs to provide incentives and harmonize the national Voluntary Sustainability Standards (VSS) scheme and other national standards to comply with NTMs imposed by destination countries.

Suggested Citation

  • Fikri Aldi Dwi Putro & Widyastutik & Nia Kurniawati Hidayat, 2025. "Non-Tariff Measures on Indonesian Tea Products: Do SPS and TBT Impede or Promote the Export?," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 71, pages 69-87, June.
    • Handle: RePEc:lpe:efijnl:202505
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    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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