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Hidden Protectionism? Evidence from Non-tariff Barriers to Trade in the United States

Author

Listed:
  • Robert Grundke

    (University of Munich)

  • Christoph Moser

    (University of Salzburg)

Abstract

Can the enforcement of product standards be protectionism in disguise? This paper estimates the costs of non-compliance with U.S. product standards, using a new database on U.S. import refusals from 2002 to 2014. We find that import refusals decrease exports to the United States. This trade reducing effect is driven by developing countries and by refusals without any product sample analysis, in particular during the Subprime Crisis and its aftermath. We also provide evidence that given product standards have been enforced more strictly during the crisis. These results are consistent with the existence of counter-cyclical, hidden protectionism due to non-tariff barriers to trade in the United States.

Suggested Citation

  • Robert Grundke & Christoph Moser, 2016. "Hidden Protectionism? Evidence from Non-tariff Barriers to Trade in the United States," Working Papers in Economics 2016-2, University of Salzburg.
    • Handle: RePEc:ris:sbgwpe:2016_002
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    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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