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Regionalism in Standards: Good or Bad for Trade?

Author

Listed:
  • Maggie X. Chen

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

  • Aaditya Mattoo

    () (World Bank)

Abstract

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.

Suggested Citation

  • Maggie X. Chen & Aaditya Mattoo, 2008. "Regionalism in Standards: Good or Bad for Trade?," Working Papers 2009-14, The George Washington University, Institute for International Economic Policy.
  • Handle: RePEc:gwi:wpaper:2009-14
    as

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    File URL: http://www.gwu.edu/~iiep/assets/docs/papers/Chen_IIEPWP2009-14.pdf
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    References listed on IDEAS

    as
    1. Soloaga, Isidro & Alan Wintersb, L., 2001. "Regionalism in the nineties: what effect on trade?," The North American Journal of Economics and Finance, Elsevier, pages 1-29.
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    5. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", pages 129-137.
    6. 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.
    7. Baldwin, Richard, 2000. "Regulatory Protectionism, Developing Nations and a Two-Tier World Trade System," CEPR Discussion Papers 2574, C.E.P.R. Discussion Papers.
    8. Maskus, Keith E. & Wilson, John S. & Tsunehiro Otsuki, 2000. "Quantifying the impact of technical barriers to trade : a framework for analysis," Policy Research Working Paper Series 2512, The World Bank.
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    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    regionalism; standard; harmonization; MRA; rules of origin;

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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