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The impact of technical regulations on trade: Evidence from South Africa

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  • Siyakiya, Puruweti

Abstract

The purpose of this study is to investigate empirically the impact of technical barriers to trade (TBTs) by using the gravity model. The study used data from South Africa’s exports of all products and other product groupings destined to 57 selected countries which comprise both developing and developed countries. To control for misspecification error the study incorporated other explanatory variables. STATA system version 13 was used to analyze the regression of data ranging from 1995 to 2015. The results revealed that TBT notifications in general are trade restrictive. The regression results unravel that TBTs negatively affect mechanic and electrical products more than other product groupings. Accordingly for all exports in general the study’s findings are an increase in the number of TBTs has an effect of reducing exports by 4.88% on average. Given the results from the study it is imperative for South Africa to harmonize its standards with its trading partners.

Suggested Citation

  • Siyakiya, Puruweti, 2017. "The impact of technical regulations on trade: Evidence from South Africa," MPRA Paper 76757, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:76757
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    File URL: https://mpra.ub.uni-muenchen.de/76757/3/MPRA_paper_76757.pdf
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    References listed on IDEAS

    as
    1. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
    2. Biswajit Nag & Anisha Nandi, 2006. "Analysing India.s Trade Dynamics vis-É-vis SAARC Members Using the Gravity Model," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 7(1), pages 83-98, March.
    3. J. M. C. Santos Silva & Silvana Tenreyro, 2006. "The Log of Gravity," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 641-658, November.
    4. Xiaohua Bao & Larry D. Qiu, 2012. "How Do Technical Barriers to Trade Influence Trade?," Review of International Economics, Wiley Blackwell, vol. 20(4), pages 691-706, September.
    5. Christopher F Baum, 2006. "Stata tip 38: Testing for groupwise heteroskedasticity," Stata Journal, StataCorp LP, vol. 6(4), pages 590-592, December.
    6. Essaji, Azim, 2008. "Technical regulations and specialization in international trade," Journal of International Economics, Elsevier, vol. 76(2), pages 166-176, December.
    7. Michael Bratt, 2014. "Estimating the bilateral impact of non-tariff measures (NTMs)," Research Papers by the Institute of Economics and Econometrics, Geneva School of Economics and Management, University of Geneva 14011, Institut d'Economie et Econométrie, Université de Genève.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Gravity Model; South Africa; Technical Regulation; WTO;

    JEL classification:

    • F1 - International Economics - - Trade
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance

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