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

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  • Michael Bratt

Abstract

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.

Suggested Citation

  • Michael Bratt, 2014. "Estimating the bilateral impact of non-tariff measures (NTMs)," Research Papers by the Institute of Economics and Econometrics, Geneva School of Economics and Management, University of Geneva 14011, Institut d'Economie et Econométrie, Université de Genève.
  • Handle: RePEc:gen:geneem:14011
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    References listed on IDEAS

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    Cited by:

    1. Siyakiya, Puruweti, 2017. "The impact of technical regulations on trade: Evidence from South Africa," MPRA Paper 76757, University Library of Munich, Germany.
    2. Mahdi Ghodsi & Julia Grübler & Robert Stehrer, 2016. "Import Demand Elasticities Revisited," wiiw Working Papers 132, The Vienna Institute for International Economic Studies, wiiw.

    More about this item

    Keywords

    Bilateral trade flows; non-tariff measures; Heckman two-stage procedure;

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