IDEAS home Printed from https://ideas.repec.org/p/wii/rpaper/rr419.html
   My bibliography  Save this paper

The Evolution of Non-Tariff Measures and their Diverse Effects on Trade

Author

Listed:
  • Mahdi Ghodsi

    () (The Vienna Institute for International Economic Studies, wiiw)

  • Julia Grübler

    () (The Vienna Institute for International Economic Studies, wiiw)

  • Oliver Reiter

    () (The Vienna Institute for International Economic Studies, wiiw)

  • Robert Stehrer

    () (The Vienna Institute for International Economic Studies, wiiw)

Abstract

The global trade slowdown and the public resistance against attempts to stimulate trade through mega-regional trade deals are placing the role of non-tariff measures (NTMs) in the limelight of public discussions. In this paper, we examine the question how different types of non-tariff measures affected global trade during the period 1995-2014. We use information on NTMs notified to the WTO from the Integrated Trade Intelligence Portal (I-TIP), which allows us to differentiate between various NTM types, including technical barriers to trade (TBTs) and sanitary and phytosanitary (SPS) measures. The two main contributions of this work are the amendment of the I-TIP database to suit econometric analysis and the estimation of trade effects of NTMs at the HS 6-digit product level for more than 100 countries with a gravity approach. Roughly 60% of all estimates point towards a trade-impeding effect of NTMs. Aggregates by NTM-imposing countries and targeted products suggest that the positive effect on the demand side compensates the negative impact on the surging costs of the supply side for SPS measures. TBTs overall appear to be trade-impeding, in particular for high-income countries in Europe and Central Asia.

Suggested Citation

  • Mahdi Ghodsi & Julia Grübler & Oliver Reiter & Robert Stehrer, 2017. "The Evolution of Non-Tariff Measures and their Diverse Effects on Trade," wiiw Research Reports 419, The Vienna Institute for International Economic Studies, wiiw.
  • Handle: RePEc:wii:rpaper:rr:419
    as

    Download full text from publisher

    File URL: https://wiiw.ac.at/the-evolution-of-non-tariff-measures-and-their-diverse-effects-on-trade-dlp-4213.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. John Christopher Beghin & Anne-Célia Disdier & Stéphan Marette, 2017. "Trade restrictiveness indices in the presence of externalities: An application to non-tariff measures," World Scientific Book Chapters,in: Nontariff Measures and International Trade, chapter 5, pages 81-104 World Scientific Publishing Co. Pte. Ltd..
    2. Julien Gourdon, 2014. "CEPII NTM-MAP: A Tool for Assessing the Economic Impact of Non-Tariff Measures," Working Papers 2014-24, CEPII research center.
    3. Olivier Cadot & Julien Gourdon, 2016. "Non-tariff measures, preferential trade agreements, and prices: new evidence," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(2), pages 227-249, May.
    4. Fontagné, Lionel & Orefice, Gianluca, 2018. "Let’s try next door: Technical Barriers to Trade and multi-destination firms," European Economic Review, Elsevier, vol. 101(C), pages 643-663.
    5. repec:wsi:wschap:9789813144415_0010 is not listed on IDEAS
    6. Arita, Shawn & Mitchell, Lorraine & Beckman, Jayson, 2015. "Estimating the Effects of Selected Sanitary and Phytosanitary Measures and Technical Barriers to Trade on U.S.-EU Agricultural Trade," Economic Research Report 212887, United States Department of Agriculture, Economic Research Service.
    7. Sawyer, Erin N. & Kerr, William A. & Hobbs, Jill E., 2008. "Consumer preferences and the international harmonization of organic standards," Food Policy, Elsevier, vol. 33(6), pages 607-615, December.
    8. Beverelli, Cosimo & Boffa, Mauro & Keck, Alexander, 2014. "Trade policy substitution: Theory and evidence from Specific Trade Concerns," WTO Staff Working Papers ERSD-2014-18, World Trade Organization (WTO), Economic Research and Statistics Division.
    9. Joseph Francois & Miriam Manchin & Hanna Norberg & Olga Pindyuk & Patrick Tomberger, 2013. "Reducing Transatlantic Barriers to Trade and Investment: An Economic Assessment," IIDE Discussion Papers 20130401, Institue for International and Development Economics.
    10. Olivier Cadot & Ernawati Munadi & Lili Yan Ing, 2015. "Streamlining Non-Tariff Measures in ASEAN: The Way Forward," Asian Economic Papers, MIT Press, vol. 14(1), pages 35-70, Winter/Sp.
    11. Everett Peterson & Jason Grant & Donna Roberts & Vuko Karov, 2013. "Evaluating the Trade Restrictiveness of Phytosanitary Measures on U.S. Fresh Fruit and Vegetable Imports," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(4), pages 842-858.
    12. Baltagi, Badi H. & Egger, Peter & Pfaffermayr, Michael, 2003. "A generalized design for bilateral trade flow models," Economics Letters, Elsevier, vol. 80(3), pages 391-397, September.
    13. Michael O. Moore & Maurizio Zanardi, 2011. "Trade Liberalization and Antidumping: Is There a Substitution Effect?," Review of Development Economics, Wiley Blackwell, vol. 15(4), pages 601-619, November.
    14. Emma Aisbett & Lee M. Pearson, 2012. "Environmental and Health Protections, or New Protectionism? Determinants of SPS Notifications by WTO Members," Crawford School Research Papers 1213, Crawford School of Public Policy, The Australian National University.
    15. Mahdi Ghodsi & Julia Grübler & Robert Stehrer, 2016. "Import Demand Elasticities Revisited," wiiw Working Papers 132, The Vienna Institute for International Economic Studies, wiiw.
    16. Yuan Li & John C. Beghin, 2017. "Protectionism indices for non-tariff measures: An application to maximum residue levels," World Scientific Book Chapters,in: Nontariff Measures and International Trade, chapter 10, pages 167-178 World Scientific Publishing Co. Pte. Ltd..
    17. Karatzoglou, Alexandros & Feinerer, Ingo, 2010. "Kernel-based machine learning for fast text mining in R," Computational Statistics & Data Analysis, Elsevier, vol. 54(2), pages 290-297, February.
    18. Cadot, Olivier, 2015. "NTMs, Preferential Trade Agreements, and Prices: New evidence," Papers 807, World Trade Institute.
    19. Ayele Gelan & Amos Omore, 2014. "Beyond Tariffs: The Role of Non-Tariff Barriers in Dairy Trade in the East African Community Free Trade Area," Development Policy Review, Overseas Development Institute, vol. 32(5), pages 523-543, September.
    20. Andrea Dal Bianco & Vasco Ladislao Boatto & Francesco Caracciolo & Fabio Gaetano Santeramo, 2016. "Tariffs and non-tariff frictions in the world wine trade," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 43(1), pages 31-57.
    21. Mahdi Ghodsi, 2015. "The Role of Specific Trade Concerns Raised on TBTs in the Import of Products to the EU, USA and China," wiiw Working Papers 116, The Vienna Institute for International Economic Studies, wiiw.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:ces:ifofob:91 is not listed on IDEAS
    2. repec:ksp:journ1:v:4:y:2017:i:3:p:263-274 is not listed on IDEAS
    3. repec:spr:weltar:v:154:y:2018:i:4:d:10.1007_s10290-018-0317-5 is not listed on IDEAS
    4. Mahdi Ghodsi & Robert Stehrer, 2017. "EU Trade Regulations and Imports of Hygienic Poultry," wiiw Working Papers 135, The Vienna Institute for International Economic Studies, wiiw.
    5. Luisa Kinzius & Alexander-Nikolai Sandkamp & Erdal Yalcin, 2018. "Trade Protection and the Role of Non-Tariff Barriers," CESifo Working Paper Series 7419, CESifo Group Munich.
    6. Julia Grübler & Oliver Reiter & Robert Stehrer, 2018. "The EU-Japan Economic Partnership Agreement and its Relevance for the Austrian Economy," wiiw Research Reports 434, The Vienna Institute for International Economic Studies, wiiw.
    7. repec:ris:integr:0773 is not listed on IDEAS
    8. Eyal RONEN, 2017. "Quantifying the trade effects of NTMs: A review of the empirical literature," Journal of Economics and Political Economy, KSP Journals, vol. 4(3), pages 263-274, September.
    9. Julia Grübler & Robert Stehrer, 2017. "Die Relevanz von nicht-tarifären Maßnahmen für den Außenhandel," FIW Policy Brief series 036, FIW.
    10. Zhaohui Niu & Chris Milner & Saileshsingh Gunessee & Chang Liu, 2018. "Are non-tariff measures and tariffs substitutes? Some panel data evidence," Discussion Papers 2018-07, University of Nottingham, GEP.
    11. Zhaohui Niu & Chang Liu & Saileshsingh Gunessee & Chris Milner, 2018. "Non-tariff and overall protection: evidence across countries and over time," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 154(4), pages 675-703, November.
    12. Doris Hanzl-Weiss & Philipp Heimberger & Mario Holzner & Olga Pindyuk & Roman Stöllinger, 2018. "Is Austria’s Economy Locked-in to the CESEE Region? A Mesoeconomic Analysis," wiiw Research Reports 433, The Vienna Institute for International Economic Studies, wiiw.
    13. -, 2018. "Evaluation of the economic and social impact of possible trade negotiations between Jamaica and Central America, Mexico and the countries of the Northern Caribbean," Documentos de Proyectos 44145, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    14. Amat Adarov & Mahdi Ghodsi & Domenico M. Nuti & Oliver Reiter, 2018. "Monthly Report No. 7-8/2018," wiiw Monthly Reports 2018-07-08, The Vienna Institute for International Economic Studies, wiiw.
    15. Jakubik, Adam & Piermartini, Roberta, 2019. "How WTO commitments tame uncertainty," WTO Staff Working Papers ERSD-2019-06, World Trade Organization (WTO), Economic Research and Statistics Division.
    16. Timini, Jacopo & Conesa, Marina, 2019. "Chinese Exports and Non-Tariff Measures: Testing for Heterogeneous Effects at the Product Level," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 34(2), pages 327-345.

    More about this item

    Keywords

    non-tariff measures; trade barriers; global trade; trade elasticity; gravity model; I-TIP;

    JEL classification:

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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wii:rpaper:rr:419. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Customer service). General contact details of provider: http://edirc.repec.org/data/wiiwwat.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.