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Impact of TBT and SPS measures on domestic value-added exports: evidence from the United States

Author

Listed:
  • Jie Wu
  • Jacob Wood
  • Keun-Yeob Oh
  • Yilin Li
  • Md Iqbal Bhuyan

Abstract

This study explores the impact that TBT and SPS measures have on 42 countries domestic value-added exports (DVAs) into the US. The results from this empirical analysis show that both TBT and SPS measures have no significant effect on gross exports, however, TBT measures have a significant inhibiting effect on DVAs, indicating that the traditional gross trade estimation approach underestimates the substantial impact of non-tariff measures on trade gains. To be specific, a 1 percentage point increase in TBT measures leads to DVA exports decrease of 2.37%. Moreover, the negative impact is mainly manifested in developing countries and high-technology products.

Suggested Citation

  • Jie Wu & Jacob Wood & Keun-Yeob Oh & Yilin Li & Md Iqbal Bhuyan, 2023. "Impact of TBT and SPS measures on domestic value-added exports: evidence from the United States," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 30(5), pages 1150-1164, September.
    • Handle: RePEc:taf:raaexx:v:30:y:2023:i:5:p:1150-1164
    DOI: 10.1080/16081625.2022.2077779
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