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Trade protection and the role of non-tariff barriers

Author

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  • 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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    15. Mattos, Enlinson & Bressan, Rafael, 2022. "Nontariff barriers, trading companies and customs duties evasion," Textos para discussão 560, FGV EESP - Escola de Economia de São Paulo, Fundação Getulio Vargas (Brazil).
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    18. Shuyao Yang, 2020. "Technical Barriers to Trade and Firms' Export Decisions," CESifo Working Paper Series 8693, CESifo.
    19. Bossoma Doriane N'Doua, 2022. "The Impact of Technical Barriers to Trade and Sanitary and Phytosanitary Measures on Trade in the Forest-Wood-Paper Sector," Working Papers hal-03573168, HAL.
    20. Muhamad Rias K. V. Zainuddin & Tamat Sarmidi & Norlin Khalid, 2020. "Sustainable Production, Non-Tariff Measures, and Trade Performance in RCEP Countries," Sustainability, MDPI, vol. 12(23), pages 1-12, November.
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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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