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Do SPS measures matter for margins of trade? Evidence from firm-level data

Author

Listed:
  • Hoda El-Enbaby
  • Rana Hendy
  • Chahir Zaki

Abstract

According to the World Trade Organization (WTO) standards, countries are allowed to adapt regulations under the Sanitary and phyto-sanitary (SPS) and technical barriers to trade (TBT) agreements in order to protect human, animal and plant health, as well as environment and human safety. Yet, these measures can become an impediment in international trade, especially for developing countries. Therefore, using an Egyptian firm-level data set and a new database on specific trade concerns raised in the TBT and SPS committees at the WTO, we analyse the effects of product standards on two related aspects: first, the probability to export (firm-product extensive margin), and second, the value exported (firm-product intensive margin). We merge this data set with a new database on specific trade concerns raised in the TBT and SPS committees at the WTO. Our main findings show that SPS measures imposed on Egyptian exporters have a negative impact on the probability of exporting a new product to a new destination. By contrast, the intensive margin of exports is not significantly affected by such measures.

Suggested Citation

  • Hoda El-Enbaby & Rana Hendy & Chahir Zaki, 2016. "Do SPS measures matter for margins of trade? Evidence from firm-level data," Applied Economics, Taylor & Francis Journals, vol. 48(21), pages 1949-1964, May.
    • Handle: RePEc:taf:applec:v:48:y:2016:i:21:p:1949-1964
    DOI: 10.1080/00036846.2015.1111987
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    References listed on IDEAS

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    1. Guimaraes, Paulo & Portugal, Pedro, 2009. "A Simple Feasible Alternative Procedure to Estimate Models with High-Dimensional Fixed Effects," IZA Discussion Papers 3935, Institute of Labor Economics (IZA).
    2. Wilson, John & Otsuki, Tsunehiro, 2003. "Balancing risk reduction and benefits from trade in setting standards: food safety in food security and food trade," 2020 vision briefs 10 No. 6, International Food Policy Research Institute (IFPRI).
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    Cited by:

    1. Mahdi Ghodsi, 2018. "The Impact of Chinese Technical Barriers to Trade on its Manufacturing Imports," wiiw Working Papers 146, The Vienna Institute for International Economic Studies, wiiw.
    2. Hakimah Nur Ahmad Hamidi & Norlin Khalid & Zulkefly Abdul Karim, 2024. "Palm oil trade restrictiveness index and its impact on world palm oil exports," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 70(3), pages 101-111.
    3. Jacob Wood & Jie Wu & Yilin Li & Haejin Jang, 2017. "The Economic Impact of SPS Measures on Agricultural Exports to China: An Empirical Analysis Using the PPML Method," Social Sciences, MDPI, vol. 6(2), pages 1-18, May.
    4. Xuemei Liu & Wei Chen & William H Meyers & Yinguo Dong, 2022. "Effects of heterogeneous SPS measures on agricultural growth: Evidence from China," PLOS ONE, Public Library of Science, vol. 17(5), pages 1-18, May.
    5. Mahdi Ghodsi, 2020. "The impact of Chinese technical barriers to trade on its manufacturing imports when exporters are heterogeneous," Empirical Economics, Springer, vol. 59(4), pages 1667-1698, October.
    6. Shaosheng Jin & Baojie Ma & Yuqing Zheng & Xin Jin & Wenchao Wu, 2024. "Short‐term impact of food safety standards on agri‐product exports: Evidence from Japan's positive list system on Chinese vegetable exports," Journal of Agricultural Economics, Wiley Blackwell, vol. 75(1), pages 362-381, February.
    7. Ayhab Saad, 2018. "The exceptional performance of exporters: Evidence from Egyptian ?rms," Working Papers 1208, Economic Research Forum, revised 12 Jun 2018.
    8. Fatma Aly & Chahir Zaki, 2025. "On deep trade agreements, institutions, and global value chains: evidence from Egypt," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 161(1), pages 49-87, February.
    9. Upalat Korwatanasakul & Youngmin Baek, 2021. "The Effect of Non-Tariff Measures on Global Value Chain Participation," Global Economic Review, Taylor & Francis Journals, vol. 50(3), pages 193-212, July.
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    11. Wu, Hongmei & Wan, Lu & Tian, He & Chen, Zhifang & Zhang, Yian, 2021. "The ternary margins of China's forest products export and their determinants," Forest Policy and Economics, Elsevier, vol. 123(C).
    12. Muhamad Rias K. V. Zainuddin & Tamat Sarmidi & Norlin Khalid, 2020. "Sustainable Production, Non-Tariff Measures, and Trade Performance in RCEP Countries," Sustainability, MDPI, vol. 12(23), pages 1-12, November.

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