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Regionalism in Standards: Good or Bad for Trade?

  • Maggie X. Chen

    ()

    (Department of Economics/Institute for International Economic Policy, George Washington University)

  • Aaditya Mattoo

    ()

    (World Bank)

Regional agreements on standards have been largely ignored by economists and blessed by multilateral trade rules. Using a constructed panel data that identifies the different types of agreements at the industry level, we find that such agreements increase the trade between participating countries but not necessarily with the rest of the world. Harmonization of standards may reduce the exports of excluded countries, especially in markets that have raised the stringency of standards. Mutual Recognition Agreements are more uniformly trade promoting unless they contain restrictive rules of origin, in which case intraregional trade increases at the expense of imports from other countries.

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File URL: http://www.gwu.edu/~iiep/assets/docs/papers/Chen_IIEPWP2009-14.pdf
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Paper provided by The George Washington University, Institute for International Economic Policy in its series Working Papers with number 2009-14.

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Length: 41 pages
Date of creation: Aug 2008
Date of revision:
Publication status: Published in Canadian Journal of Economics 41(3), August 2008, pp. 838-863
Handle: RePEc:gwi:wpaper:2009-14
Contact details of provider: Web page: http://www.gwu.edu/~iiep/
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  8. Swann, Peter & Temple, Paul & Shurmer, Mark, 1996. "Standards and Trade Performance: The UK Experience," Economic Journal, Royal Economic Society, vol. 106(438), pages 1297-1313, September.
  9. 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.
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