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Product Standards and Margins of Trade: Firm Level Evidence

Author

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  • Lionel Gérard Fontagné
  • Gianluca Orefice
  • Roberta Piermartini
  • Nadia Rocha

Abstract

We address the trade effect of restrictive product standards on the margins of trade, by matching a detailed panel of French firm exports with a new database compiling the list of Sanitary and Phyto-Sanitary regulatory measures that have been raised as a concern in dedicated committees of the WTO. By using specific trade concerns to capture the degree of restrictiveness of product standards we focus only on standards that are perceived as a barrier to trade. We analyse their effects on three trade related aspects: (i) probability to export and to exit the export market (firm-product extensive margins), (ii) value exported (firm-product intensive margin) and (iii) export prices. We find that SPS concerns discourage the presence of French exporters in SPS-imposing foreign markets. We also find a negative effect of SPS imposition on the intensive margins of trade. Finally, the former negative effects of SPS are attenuated for big firms.

Suggested Citation

  • Lionel Gérard Fontagné & Gianluca Orefice & Roberta Piermartini & Nadia Rocha, 2013. "Product Standards and Margins of Trade: Firm Level Evidence," CESifo Working Paper Series 4169, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_4169
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    References listed on IDEAS

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    More about this item

    Keywords

    international trade; firm heterogeneity; multi-product exporters; non-tariff barriers;

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F15 - International Economics - - Trade - - - Economic Integration

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