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Product Standards and Margins of Trade: Firm-Level Evidence Product Standards and Margins of Trade: Firm-Level Evidence

Author

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  • Lionel Fontagné

    (PSE - Paris School of Economics, CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique)

  • Gianluca Orefice

    (Centre d'Etudes Prospectives et d'Informations Internationales)

  • Roberta Piermartini

    (WTO)

  • Nadia Rocha

    (WTO)

Abstract

This paper considers the heterogenous trade effects of restrictive Sanitary and Phyto-Sanitary (SPS) measures on exporters of different sizes, and the channels via which aggregate exports fall: firm participation, export values and pricing strategies. We do so by matching a detailed panel of French firm exports to a new database of SPS regulatory measures that have been raised as of concern in the dedicated committees of the WTO. By using specific trade concerns to capture the restrictiveness of product standards, we focus only on standards that are perceived as trade barriers. We analyze their effects on three trade-related outcomes: (i) the probability to export and to exit the export market (the firm-product extensive margin), (ii) the value exported (the firm-product intensive margin), and (iii) export prices. We find that SPS concerns discourage the presence of exporters in SPS-imposing foreign markets. We also find a negative effect of SPS imposition on the intensive margins of trade. These negative effects SPS are attenuated in larger firms.

Suggested Citation

  • Lionel Fontagné & Gianluca Orefice & Roberta Piermartini & Nadia Rocha, 2015. "Product Standards and Margins of Trade: Firm-Level Evidence Product Standards and Margins of Trade: Firm-Level Evidence," PSE - Labex "OSE-Ouvrir la Science Economique" hal-01299757, HAL.
  • Handle: RePEc:hal:pseose:hal-01299757
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01299757
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    References listed on IDEAS

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    Keywords

    non-tariff barriers *; International trade; firm heterogeneity; multi-product exporters;

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