A Meta-Analysis of the Impact of Technical Barriers to Trade

A meta-analysis explains the variation in estimated trade effects of technical barriers to trade broadly defined, using available estimates from the empirical international trade literature, and accounting for data sampling and methodology differences. Agriculture and food industries tend to be more impeded by these barriers than other sectors. SPS regulations on agricultural and food trade flows from developing exporters to high-income importers tend to impede trade. Not controlling for “multilateral resistance” barriers increase the likelihood to overstate the trade impeding effect of technical measures and not accounting for their potential endogeneity with trade does the opposite. Studies using direct maximum residue limits tend to find more trade impeding effects than other measures and clearer policy implications. Other technical measures proxies tend to muddle results and increase the likelihood of inconclusive results and few policy implications.