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Quantifying the trade impact of SPS and TBTs with product-level structural gravity

Author

Listed:
  • Fabio Artuso
  • Julian L. Clarke
  • Lionel Fontagné
  • Mahdi Ghodsi

    (The Vienna Institute for International Economic Studies, wiiw)

  • Gianluca Santoni

Abstract

Non-tariff measures (NTMs), especially sanitary and phytosanitary (SPS) measures and technical barriers to trade (TBTs), have become crucial components of climate, industrial, and regulatory policy, impacting the majority of global trade. However, quantifying their effects on trade is challenging because NTMs are usually non-discriminatory and challenging to identify in standard gravity frameworks. Using a multi-stage structural gravity estimation strategy combined with a control-function correction for endogeneity, we estimate the trade elasticities and ad valorem equivalents of NTMs at the HS6 level for over 5,000 products. Our results reveal significant heterogeneity in NTM trade costs, especially in environmentally relevant sectors, such as clean technologies and electric vehicles. These estimates can inform regulatory impact assessments and general-equilibrium analyses of climate-aligned trade policies.

Suggested Citation

  • Fabio Artuso & Julian L. Clarke & Lionel Fontagné & Mahdi Ghodsi & Gianluca Santoni, 2026. "Quantifying the trade impact of SPS and TBTs with product-level structural gravity," wiiw Working Papers 273, The Vienna Institute for International Economic Studies, wiiw.
    • Handle: RePEc:wii:wpaper:273
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    File URL: https://wiiw.ac.at/quantifying-the-trade-impact-of-sps-and-tbts-with-product-level-structural-gravity-dlp-7544.pdf
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    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F18 - International Economics - - Trade - - - Trade and Environment

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