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Estimating the bilateral impact of non-tariff measures (NTMs)

  • Michael Bratt
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    The present paper seeks to estimate how the impact of NTMs on trade can vary across export-import pairs by adopting a Heckman two-stage procedure of a gravity model that includes so-called comparative advantage variables. These variables consist of factor endowments of each trading partner and serve to identify the country-specific effects of NTMs. Covering data for the early 2000s, regressions are run at the 6-digit level of the harmonised system and the estimated results are converted into ad-valorem equivalents (AVEs). The results suggest that a substantial amount of NTMs facilitate rather than impede trade, but that the overall impact on trade is nonetheless negative in the majority of cases. Furthermore, they underline the importance of conditioning conclusions on trading partners and products and demonstrate that the same NTM can have different – and even opposite – effects across exporting countries.

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    Paper provided by Institut d'Economie et Econométrie, Université de Genève in its series Research Papers by the Institute of Economics and Econometrics, Geneva School of Economics and Management, University of Geneva with number 14011.

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    Length: 30 pages
    Date of creation: Jan 2014
    Date of revision:
    Handle: RePEc:gen:geneem:14011
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