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Impact of Technical Barriers to Trade on Argentine Exports and Labor Markets

  • Gabriel Sánchez
  • María Laura Alzúa

    (Centro de Estudios Distributivos, Laborales y Sociales (CEDLAS) - FCE - UNLP)

  • Inés Butler

While tariff and quota barriers in agricultural, food and manufactured products have been declining due to the proliferation of multilateral trade agreements, there is increasing debate regarding the impact of product and process standards and technical regulations, since they may have become a subtler form of protection. One of the possible effects of increasing standards in developing countries is that it may affect the size of the exporting sector, with adverse effects on labor markets. We test such effect for the case of Argentina using firm level data for the manufacturing sector. We find evidence of a reduction in export shares due to an increase in standard stringency. Moreover, there is an increase in the skill ratio for exporting firms. The overall effect of standard stringency on average wages of exporting firms is negative, supporting the idea that lower net producer prices, due to a higher cost of standard compliance, are passed on to workers.

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File URL: http://cedlas.econo.unlp.edu.ar/archivos_upload/doc_cedlas79.pdf
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Paper provided by CEDLAS, Universidad Nacional de La Plata in its series CEDLAS, Working Papers with number 0079.

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Length: 36 pages
Date of creation: Dec 2008
Date of revision:
Handle: RePEc:dls:wpaper:0079
Contact details of provider: Postal: Calle 48 No555 - La Plata (1900)
Phone: 21- 1466
Fax: 54-21-25-9536
Web page: http://cedlas.econo.unlp.edu.ar/

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  1. Hertel, Thomas W. & Maros Ivanic & Paul Preckel & John Cranfield, 2004. "The Earnings Effects of Multilateral Trade Liberalization: Implications for Poverty in Developing Countries," GTAP Working Papers 1208, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  2. Galiano, Sebastian & Porto, Guido G., 2006. "Trends in tariff reforms and trends in wage inequality," Policy Research Working Paper Series 3905, The World Bank.
  3. L. Alan Winters & Neil McCulloch & Andrew McKay, 2004. "Trade Liberalization and Poverty: The Evidence So Far," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 72-115, March.
  4. Ronald Fischer & Pablo Serra, 1998. "Standards and Protection," Documentos de Trabajo 45, Centro de Economía Aplicada, Universidad de Chile.
  5. Maskus, Keith E. & Otsuki, Tsunehiro & Wilson, John S., 2005. "The cost of compliance with product standards for firms in developing countries: an econometric study," Policy Research Working Paper Series 3590, The World Bank.
  6. Roberts, Mark J. & Tybout, James R., 1995. "An empirical model of sunk costs and the decision to export," Policy Research Working Paper Series 1436, The World Bank.
  7. Sherman, Robinson & Robilliard, Anne-Sophie & Bourguignon, François, 2005. "Representative versus real households in the macro-economic modelling of inequality," Economics Papers from University Paris Dauphine 123456789/4535, Paris Dauphine University.
  8. Thomas W. Hertel & Maros Ivanic & Paul V. Preckel & John A. L. Cranfield, 2004. "The Earnings Effects of Multilateral Trade Liberalization: Implications for Poverty," World Bank Economic Review, World Bank Group, vol. 18(2), pages 205-236.
  9. Reimer, Jeffrey J., 2002. "Estimating the Poverty Impacts of Trade Liberalization," GTAP Working Papers 1163, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  10. Mattias Ganslandt & James R. Markusen, 2001. "Standards and Related Regulations in International Trade: A Modeling Approach," NBER Working Papers 8346, National Bureau of Economic Research, Inc.
  11. Porto, Guido G., 2003. "Trade reforms, market access, and poverty in Argentina," Policy Research Working Paper Series 3135, The World Bank.
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