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Impact of Non-tariff Measures of the People's Republic of China on the Export of Agricultural Products of Lao People's Democratic Republic

In: Comparative Analysis of Trade and Finance in Emerging Economies

Author

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  • Vadsana Chanthanasinh
  • Piya Wongpit

Abstract

The main objectives of this study were to examine the Lao People’s Democratic Republic (PDR) agricultural exports to the People’s Republic of China (PRC), the tuning of the Agricultural Commodity Frequency Index (ACFI) to non-tariff measures (NTMs), and the coverage ratio of goods to determine the effects of the PRC’s NTMs on Lao PDR’s agricultural exports using a demand export model with a fixed-effect method. The authors found that Lao PDR’s agricultural exports to the PRC increased by an average of 46.91% from 2013 to 2020, covering a total of 51 product codes, comprising six of the most valuable product types (i.e., bananas, corn, tapioca flour, watermelon, sticky rice, and sweet potato) given priority by the PRC. Additionally, from 2013 to 2020, the average ACFI concentration with NTMs was 10.08%, and the average coverage ratio for goods was 14.43%. The results of statistical significance testing at 1% suggest that three factors demonstrated the most significant impact on value: agricultural products facing NTMs in the form of sanitary and phytosanitary (SPS) measures and technical barriers to trade (TBTs), treaties with priority conditions regarding SPSs and priorities for agricultural products, and the real gross domestic product (GDP) of the PRC. Furthermore, a PRC GDP increase of 1% resulted in a 3.1235% impact on Lao PDR exports.

Suggested Citation

  • Vadsana Chanthanasinh & Piya Wongpit, 2023. "Impact of Non-tariff Measures of the People's Republic of China on the Export of Agricultural Products of Lao People's Democratic Republic," International Symposia in Economic Theory and Econometrics, in: Comparative Analysis of Trade and Finance in Emerging Economies, volume 31, pages 131-149, Emerald Group Publishing Limited.
  • Handle: RePEc:eme:isetez:s1571-038620230000031018
    DOI: 10.1108/S1571-038620230000031018
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    Citations

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    Cited by:

    1. Wongpit, Piya & Syphoxay, Pakaiphone & Sisoumang, Bounthom & Sykhanthong, Sengsulixay, 2023. "Mapping the Coffee Value Chain in Lao PDR: Issues, Insights, and Strategies," Research on World Agricultural Economy, Nan Yang Academy of Sciences Pte Ltd (NASS), vol. 4(4), October.

    More about this item

    Keywords

    Coverage ratio; frequency index; non-tariff measures; trade preference; sanitary and phytosanitary; technical barriers to trade; F14 Empirical Studies of Trade;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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