IDEAS home Printed from https://ideas.repec.org/p/een/crwfrp/1213.html
   My bibliography  Save this paper

Environmental and Health Protections, or New Protectionism? Determinants of SPS Notifications by WTO Members

Author

Listed:
  • Emma Aisbett
  • Lee M. Pearson

Abstract

The drastic reductions in bound tariffs agreed by WTO members over the past half century have been accompanied by a substantial rise in non-tariff barriers to trade. Many commentators have drawn a causal link between these two phenomena, but there have been few attempts to empirically test this claim. This lack is particularly apparent with regard to Sanitary and Phytosanitary (SPS) measures, despite their increasing prevalence both in the media and in WTO disputes. SPS measures, like other health and environment regulations, ostensibly serve legitimate national policy objectives and cannot be labeled as “green” protectionism merely by considering posterior trade impacts. The determinants of these regulations matter. This paper uses members’ SPS notifications to the WTO at the product level to test the importance of negotiated tariff reductions as a driver for additional SPS regulations. By exploiting time-series, cross-country and cross-product variation in the data we confirm that decreases in bound tariff rates increase the probability of new SPS measures. The policy implications of this result are, however, tempered by our other major finding, namely, that the impact of tariff constraint on SPS notifications is minor compared to that of demographic, governance and environmental variables

Suggested Citation

  • Emma Aisbett & Lee M. Pearson, 2012. "Environmental and Health Protections, or New Protectionism? Determinants of SPS Notifications by WTO Members," Crawford School Research Papers 1213, Crawford School of Public Policy, The Australian National University.
  • Handle: RePEc:een:crwfrp:1213
    as

    Download full text from publisher

    File URL: http://ssrn.com/abstract=2196193
    Download Restriction: no

    References listed on IDEAS

    as
    1. Hausman, Jerry A & Taylor, William E, 1981. "Panel Data and Unobservable Individual Effects," Econometrica, Econometric Society, vol. 49(6), pages 1377-1398, November.
    2. World Bank, 2009. "Country Social Analysis : Ethnicity and Development in Vietnam - Summary report," World Bank Other Operational Studies 3093, The World Bank.
    3. Chiswick, Barry R & Patrinos, Harry Anthony & Hurst, Michael E, 2000. "Indigenous Language Skills and the Labor Market in a Developing Economy: Bolivia," Economic Development and Cultural Change, University of Chicago Press, vol. 48(2), pages 349-367, January.
    4. William Easterly & Ross Levine, 1997. "Africa's Growth Tragedy: Policies and Ethnic Divisions," The Quarterly Journal of Economics, Oxford University Press, vol. 112(4), pages 1203-1250.
    5. Lazear, Edward P. & Michael, Robert T., 1988. "Allocation of Income within the Household," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226469669.
    6. Chiswick, Barry R & Miller, Paul W, 1995. "The Endogeneity between Language and Earnings: International Analyses," Journal of Labor Economics, University of Chicago Press, vol. 13(2), pages 246-288, April.
    7. Fortin, Nicole & Lemieux, Thomas & Firpo, Sergio, 2011. "Decomposition Methods in Economics," Handbook of Labor Economics, Elsevier.
    8. Lipton, Michael & Ravallion, Martin, 1995. "Poverty and policy," Handbook of Development Economics,in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 41, pages 2551-2657 Elsevier.
    9. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    10. Tom Kompas & Tuong Nhu Che & Hoa Thi Minh Nguyen & Ha Quang Nguyen, 2012. "Productivity, Net Returns, and Efficiency: Land and Market Reform in Vietnamese Rice Production," Land Economics, University of Wisconsin Press, pages 478-495.
    11. Parker, Susan W & Rubalcava, Luis & Teruel, Graciela, 2005. "Schooling Inequality and Language Barriers," Economic Development and Cultural Change, University of Chicago Press, vol. 54(1), pages 71-94, October.
    12. Audretsch, David B & Feldman, Maryann P, 1996. "R&D Spillovers and the Geography of Innovation and Production," American Economic Review, American Economic Association, vol. 86(3), pages 630-640, June.
    13. Bob Baulch & Hung T. Pham & Barry Reilly, 2012. "Decomposing the Ethnic Gap in Rural Vietnam, 1993--2004," Oxford Development Studies, Taylor & Francis Journals, vol. 40(1), pages 87-117, June.
    14. Castel, Paulette, 2009. "Health insurance : use of health care services by the poor efficiency and equity issues in the province of Kon Tum," Social Protection and Labor Policy and Technical Notes 64275, The World Bank.
    15. Christian Dustmann & Francesca Fabbri, 2003. "Language proficiency and labour market performance of immigrants in the UK," Economic Journal, Royal Economic Society, vol. 113(489), pages 695-717, July.
    16. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    17. Chiswick, Barry R, 1991. "Speaking, Reading, and Earnings among Low-Skilled Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 9(2), pages 149-170, April.
    18. Breusch, Trevor & Ward, Michael B. & Nguyen, Hoa Thi Minh & Kompas, Tom, 2011. "FEVD: Just IV or Just Mistaken?," Political Analysis, Cambridge University Press, pages 165-169.
    19. Deaton,Angus & Muellbauer,John, 1980. "Economics and Consumer Behavior," Cambridge Books, Cambridge University Press, number 9780521296762, March.
    20. Breusch, Trevor & Ward, Michael B. & Nguyen, Hoa Thi Minh & Kompas, Tom, 2011. "On the Fixed-Effects Vector Decomposition," Political Analysis, Cambridge University Press, vol. 19(02), pages 123-134, March.
    21. Bob Baulch & Truong Thi Kim Chuyen & Dominique Haughton & Jonathan Haughton, 2007. "Ethnic minority development in Vietnam," Journal of Development Studies, Taylor & Francis Journals, vol. 43(7), pages 1151-1176.
    22. Ben Jann, 2008. "A Stata implementation of the Blinder-Oaxaca decomposition," ETH Zurich Sociology Working Papers 5, ETH Zurich, Chair of Sociology, revised 14 May 2008.
    23. R. Grafton & Tom Kompas & P. Owen, 2007. "Bridging the barriers: knowledge connections, productivity and capital accumulation," Journal of Productivity Analysis, Springer, pages 219-231.
    24. van de Walle, Dominique & Gunewardena, Dileni, 2001. "Sources of ethnic inequality in Viet Nam," Journal of Development Economics, Elsevier, vol. 65(1), pages 177-207, June.
    25. World Bank, 2009. "Country Social Analysis : Ethnicity and Development in Vietnam - Main Report," World Bank Other Operational Studies 3094, The World Bank.
    26. Tuong Nhu Che & Tom Kompas & Neil Vousden, 2006. "Market Reform, Incentives and Economic Development in Vietnamese Rice Production," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 48(2), pages 277-301, June.
    27. Edmonds, Eric V. & Pavcnik, Nina, 2005. "The effect of trade liberalization on child labor," Journal of International Economics, Elsevier, vol. 65(2), pages 401-419, March.
    28. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:nbp:nbpbik:v:48:y:2017:i:1:p:45-72 is not listed on IDEAS
    2. Lili Yan ING & Olivier CADOT, 2017. "Remaking Ad valorem equivalents of non-tariff measures in ASEAN," Working Papers DP-2017-09, Economic Research Institute for ASEAN and East Asia (ERIA).
    3. Mahdi Ghodsi & Julia Grübler & Oliver Reiter & Robert Stehrer, 2017. "The Evolution of Non-Tariff Measures and their Diverse Effects on Trade," wiiw Research Reports 419, The Vienna Institute for International Economic Studies, wiiw.
    4. Mohammad Mahdi Ghodsi & Jan J. Michałek, 2014. "Technical Barriers to Trade Notifications and Dispute Settlement of the WTO," Working Papers 2014-22, Faculty of Economic Sciences, University of Warsaw.
    5. Olivier CADOT & Lili Yan ING, 2017. "Ad-valorem equivalents of NTMs in ASEAN," Working Papers P203, FERDI.
    6. Boza, Sofía, 2016. "Determinants of SPS notification submissions for Latin American WTO members," Papers 970, World Trade Institute.
    7. Beverelli, Cosimo & Boffa, Mauro & Keck, Alexander, 2014. "Trade policy substitution: Theory and evidence from Specific Trade Concerns," WTO Staff Working Papers ERSD-2014-18, World Trade Organization (WTO), Economic Research and Statistics Division.
    8. Zhaohui Niu & Chang Liu & Saileshsingh Gunessee & Chris Milner, 2017. "Non-Tariff and Overall Protection: Evidence from Across Countries and Over Time," Discussion Papers 2017-08, University of Nottingham, GEP.
    9. Eyal Ronen, 2017. "Tariffs and non-tariff measures: substitutes or complements. A cross-country analysis," Bank i Kredyt, Narodowy Bank Polski, vol. 48(1), pages 45-72.
    10. Mahdi Ghodsi & Jan Jakub Michalek, 2016. "Technical Barriers To Trade Notifications And Dispute Settlement Within The Wto," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 11(2), pages 219-249, June.
    11. Olivier CADOT & Lili Yan ING, 2017. "Ad-valorem equivalents of NTMs in ASEAN," Working Papers P203, FERDI.
    12. M. Mahdi Ghodsi, 2013. "Welfare Analysis of a Prohibitive NTM in a Society with a Proportion of Concerned Consumers," Working Papers 2013-12, Faculty of Economic Sciences, University of Warsaw.

    More about this item

    Keywords

    Political Economy trade; Non-tariff Barriers; Standards; WTO; SPS;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:een:crwfrp:1213. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (David Stern). General contact details of provider: http://edirc.repec.org/data/asanuau.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.