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Trade protection and the role of non-tariff barriers

Author

Listed:
  • Kinzius, Luisa
  • Sandkamp, Alexander
  • Yalcin, Erdal

Abstract

A growing share of modern trade policy instruments is shaped by non-tariff barriers (NTBs). Based on a structural gravity equation and the recently updated Global Trade Alert database, we empirically investigate the effect of NTBs on imports. Our analysis reveals that the implementation of NTBs reduces imports of affected products by up to 12%. Their trade dampening effect is thus comparable to that of trade defence instruments such as anti-dumping duties. It is smaller for exporters that have a free trade agreement with the importing country. Different types of NTBs affect trade to a different extent. Finally, we investigate the effect of behind-the-border measures, showing that they significantly lower the importer's market access.

Suggested Citation

  • Kinzius, Luisa & Sandkamp, Alexander & Yalcin, Erdal, 2019. "Trade protection and the role of non-tariff barriers," Munich Reprints in Economics 78217, University of Munich, Department of Economics.
    • Handle: RePEc:lmu:muenar:78217
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    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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