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Recent years have seen a surge in economic integration agreements (EIAs) and the development of non-tariff measures (NTMs).
As a consequence, a growing number of EIAs include provisions on NTMs. However, little attention has been given in the literature
to the effects of NTM liberalization in the context of EIAs. In this paper, we focus on provisio...
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Using a novel common econometric specification, we examine the measurement of three important effects in international trade that historically have been addressed largely separately: the (partial) effects on trade of economic integration agreements, international borders, and bilateral distance. First, recent studies focusing on precise and unbiase...
Citations
... Although the dependent variable for the Poisson regression is specified as exports in levels rather than in logarithms, the coefficients of any independent variables entered in logarithms can still be interpreted as simple elasticities (Shepherd 2016). Moreover, the PPML estimator is the most recommended technique to deal with heteroskedasticity in the error term (Disdier et al. 2015), although it too can solve endogeneity problems. The HSS estimator deals with omitted variable bias arising from zero trade flows. ...
The impacts of climate change on agricultural systems in West Africa have been analyzed extensively. However, few studies have focused on livestock systems. Using export data for the period 1996–2017 and climate data for two major cattle suppliers (Mali and Burkina Faso) and one net importer (Côte d’Ivoire) in West Africa, we estimated a gravity model of temperature and cattle trade. Our study provides findings on the impacts of climate change on cattle supply. Indeed, we found that climate shocks in some major Sahel cattle-exporting countries, i.e., Mali and Burkina Faso, can affect the supply of a coastal import country, such as Côte d’Ivoire. Specifically, the study supports findings that a temperature increase in the Sudanian region of the Sahel induces a significant decrease in cattle trade flows. We found, as an example, that a 0.3 °C global increase in temperature could decrease cattle trade flow by 25%, which could happen to exports in 10 years from 2020 in the moderate climate change scenario (RCP 4.5), and in 06 years in the pessimistic scenario (RCP 8.5) at horizon 2050. There is a 67% and 80% chance, respectively, that this will happen, based on the climate change scenario. Our results are of great interest to cattle systems because they partly demonstrate the result of inaction in the face of climate change in that economic sector. In fact, if nothing is set up, significant disruption to cattle trade flow from Sahelian countries, which is projected to occur in the near future, could weaken regional economic integration in addition to raising the risk of food insecurity.
... Para evitar los efectos disruptivos sobre el comercio que supone la implementación de reglamentaciones técnicas, es importante la transparencia en la información, la armonización de normas y el reconocimiento mutuo de homologaciones y certificaciones (Chen y Mattoo, 2008;Disdier et al., 2014;Portugal-Perez et al., 2010). Esta agenda es particularmente importante en el caso del comercio intrarregional, ya que puede afectar un volumen de transacciones mucho mayor. ...
Una creciente cantidad de requisitos técnicos, públicos y privados, para la comercialización de bienes, ponen en riesgo la inserción internacional argentina. Abordamos este problema mediante estudios de caso en Argentina en los sectores de arándanos y maquinaria agrícola. Describimos los requisitos técnicos en mercados externos relevantes y analizamos los desafíos y estrategias de las empresas para cumplirlos. Encontramos que los requisitos técnicos no son una barrera infranqueable para las empresas que deciden cumplirlos, pero aun así pueden obstaculizar su inserción internacional. Existen políticas públicas que pueden facilitar que las empresas los conozcan y cumplan en forma efectiva y poco costosa.
... There are two sources of trade data used in this paper. The trade data for calculating the real effective exchange rate and the data for counting the imports and exports of other countries with China are obtained from the CEPII database according to Xi [38], Disdier [39], Wei [40], Porteous [41] and so on. The CEPII is the leading French center for research and expertise on the world economy. ...
The impact of exchange-rate fluctuations on resource reallocation is of particular interest to researchers and policymakers with China’s further opening to the international market and the transformation of economic growth. With high-speed growth, pollution issues have become an international concern. This paper examines how RMB exchange-rate movements affect resource allocation efficiency within industries at different pollution levels, based on the data of Chinese industrial enterprises during 1998–2007. Unlike previous studies, we analyze how within-industry productivity dispersion reacts to exchange-rate appreciation from the perspective of the heterogeneity across firms in their exposure to foreign competition in each industry. Our findings suggest that appreciation causes an increase in productivity dispersion, which implies a decrease in resource allocation efficiency. The increased dispersion of industries with higher pollution levels is more diminutive than lower levels. The productivity dispersion is intended to shrink for high-polluting industries due to the real exchange-rate appreciation. Appreciation plays a positive role in efficiency for pollution-intensive industries.
... Unlike tariffs, NTM has the potential to enhance trade (Disdier, Fontagné, & Cadot, 2015). Moreover, industrial policies start to regain the attention of many economists as one of the important ways to grow low-to-medium income economies (Rodrik, 2007 The next section discusses literature covering the importance of imported inputs to firm performance as well as on TFP estimations. ...
... In the study of NTM, gravity estimation with a binary independent variable to capture the impact of NTMs seems to be the standard approach Disdier et al., 2015;Kee, Nicita, & Olarreaga, 2009). There are two main approaches to control for the impact of NTM on trade (Deardorff & Stern, 1997). ...
Indonesian government aims for a manufacturing-based growth, according to its development plans. In this work, I provide an analysis of the importance to have an open trade and investment regulatory environment for the success of manufacturing-based growth, especially in the Global Value Chain era. I present a CGE analysis on how a better capital market reform can naturally help Indonesian manufacturing firms. In the short-run, the government must expect an increased Current Account Deficit (CAD) from net imported capital, which will be paid off in the long run. Not shying away from CAD is important in the early stage of the reform. Halting the CAD with import restriction will only reduce firms' competitiveness and prevent them from competing abroad and instead focusing on the domestic market where firms will require even more protection from import competition.
... This growth was partly linked to the rapid technological development across the globe, the process of trade liberalization under the multilateral trading system (WTO), and the proliferation of regional trade integration arrangements (RTAs). The process of multilateral trade liberalization has been successful in significantly reducing import tariffs, which currently stand at an average below 5% globally [3]. However, non-tariff measures (NTMs) are on the rise and can hinder trade-driven sustainable economic development. ...
In recent years, the Indian Ocean Rim Association has witnessed an increasing trend in the use of non-tariff measures (NTMs). This study evaluated the impact of NTMs in the Indian Ocean Rim Association through estimations of their ad valorem equivalents at the HS chapter and country levels. A gravity model using NTM count data (intensity) was specified and estimated to derive the importer-specific ad valorem equivalents for the four (4) most used NTMs in the region. The results showed the presence of both import-impeding and import-promoting effects of NTMs; however, the import-impeding effects dominated in the region. The quantitative restriction and safeguard measures were more restrictive compared to the sanitary and phytosanitary measures and technical barriers to trade. This was expected since quantitative restrictions are trade-distorting by design. This calls for reforming trade policy in the region toward NTMs that are more transparent and trade enhancing for successful subsequent trade negotiations in the Indian Ocean Rim Association, which would support the sustainable economic development of the region.
... However, as tariffs are negotiated down, there is an increased proliferation of non-tariff measures (NTMs) on agricultural products, especially food safety regulations, which may impact on the abilities of countries to access global markets. Recently, food safety regulations have emerged as an increasingly prominent tool in trade regulations and are regarded as one of the most important NTMs affecting developing countries' export products (Disdier et al. 2015;Fontagné et al. 2015;Kareem 2016a, b;Kareem et al. 2017;Maertens and Swinnen 2009). ...
In many developing countries, women constitute the bulk of agricultural sector’s workers and might be susceptible to job loss or gain in the presence of regulations among which are food safety regulations. Thus, this study investigates the gender implications of EU food safety regulations on agricultural labour market between 1995 and 2012 using a panel data of 90 developing countries. In addition, it also investigates how the existing gender-specific obstacles and opportunities affect women’s ability to engage effectively in the agricultural sector and benefit from such regulations. Our results show that in many of the countries considered, women are disproportionately disadvantaged in the agricultural sector not only because of the effect of the food regulations but also because of their unequal access to opportunities such as gender inequality in both secondary and tertiary schooling as well as low quality of time-saving infrastructure which make them less available for gainful employment. However, the near gender parity achieved in primary education increases their agricultural employment share. Thus, investment in infrastructure that reduces women care burden, and building the educational capacity of women could work to remove these gender-specific obstacles and enable women to respond to employment opportunities.
... Such asymmetry gave rise to a continuous process of standards harmonization mainly between developed and developing countries, with important implications for North-South and South-South trade. This has been empirically investigated by Disdier, Fontagné, and Cadot (2015) who show that standards harmonization fosters North-South trade, yet at the expense of reducing South-South trade. The authors emphasized that such scenario of standards liberalization is welfare improving for Northern and Southern participants, while it might induce a welfare loss for excluded Southern countries. ...
The main objective of this dissertation is to address three questions, which despite their theoretical appeal, received little attention in existing theoretical work in international trade, and are thus still open. The goal of this dissertation is thus threefold. The first consists in studying the welfare implications of standards liberalization under country-level asymmetry both in market size and stringency of local standards. The second is to examine both theoretically and empirically the income effect on trade margins and on the degree of their sensitivity to trade costs. The third objective is to concentrate on the firm-specific aspect of the demand elasticity beyond the CES, and to examine the role it plays in determining the magnitude and the structure of the gains from trade. Towards this goal, I embed alternative assumptions on both the demand and supply side in the canonical Melitz-Chaney model of international trade with heterogeneous firms (Melitz, 2003; Chaney, 2008). ln so doing, the current dissertation contributes to trade theory with heterogeneous firms along three lines. ln Chapter 1, I show that standards liberalization is welfare improving only when the cost hierarchy is "verti-zontal" and the trading partner is larger than the excluded country. ln Chapter 2, I show that the intensive margin of trade increases only with per-capita income in general equilibrium, and that per-capita income dampens the sensitivity of trade margins to trade costs. ln Chapter3, I demonstrate that demand curvature plays a crucial role in determining the structure and the magnitude of the gains from trade, whereas the type of preferences affects only marginally these results.
... The World Trade Organisation (WTO) allows national standards to differ from international standards. However, international harmonised standards are less costly to comply with than national standards, and the former might be less trade-inhibiting or even trade-promoting (Disdier, Fontagne, & Cadot, 2015). Indeed, with harmonisation trade benefits accrue to exporting countries as they pay only one adaptation costs to access foreign markets. ...
... The harmonisation of standards is typically found to have trade-promoting effects. Existing studies indicate that national or regional standards are tradeinhibiting, while international harmonised standards are trade-promoting (Disdier et al., 2015;Otsuki, Wilson, & Sewadeh, 2001;Shepherd & Wilson, 2013). Early studies in this direction such as Wilson, Otsuki, and Majumdsar (2003) estimate that the harmonisation of EU standards to Codex standards would increase world exports and global trade in beef compared to the divergent EU standards, which exert a negative trade effect. ...
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The high costs of complying with standards adversely affect export competitiveness. Existing evidence suggests that the harmonisation of standards to international benchmarks reduces compliance costs and is less trade-inhibiting, or may even be trade-promoting. This paper thus investigates how the regulatory margin in food standards affects Africa’s fish exports to the EU. We measure the regulatory margin in standards by comparing EU standards to the international scientifically-formulated benchmarks. Our results indicate that, relative to the international standards, EU fish standards are indeed non-inhibiting. Thus, the high number of fish exports from Africa rejected by the EU due to non-compliance with EU standards does not really suggest that the measures are overly restrictive but rather is an indication of the poor quality of Africa’s fish exports. This finding suggests a need for upgrades to Africa’s fish export quality, especially the fish supply chain infrastructure, through continuous improvements in fish export logistics facilitation and export promotion measures.
... They further establish that trade re strictions in the form of export duty and liberalization are more significant in Af rican countries compared to East and South Asian and Latin American countries. In the same vain, Disdier, Fontagné and Cadot (2015) examine the impact of tech nical regulations on trade between developed and developing countries and they establish that harmonization of standards at regional level is more trade impeding than making alignments of standards at international level for the countries in the south. This supports the notion that developing countries are most affected by trade frictions than developed ones. ...
This paper examines the extent to which trade openness measures affect Zimbabwe's bilateral trade performance with 47 countries over the period 20052015. The analysis came up with three main findings. Firstly, results reveal that lowering nontariff measures (NTMs) by im porting countries enhances export performance both at aggregate and disaggregate levels. Sec ondly, lowering tariffs by both importer and exporter is insignificant in promoting Zimbabwe's exports. Lastly, improving NTMs by importing countries stimulates Zimbabwe's exports of agri cultural products than that of industrial products. The results are found after controlling for other factors that have an impact on trade flow like income, population, distance, landlockedness, com mon border and common colonial. In line with the results, it is imperative for importing countries to aim at removing huddles that deter trade as well as implementing policies that enhance trade flow. Important revelations of this paper are that, policies that focus on reducing or eliminating NTMs are very pertinent in promoting the growth of exports in particular as well as facilitating trade is general.
... At the same time, it is critical for both exporting establishments and policymakers to address inherent influential factors such as non-tariff measures (NTMs) that raise trade costs, consequently impacting the TRQ fill. Such influential factors, which include NTMs, are identified in various literature (Cadot and Gourdon 2016;Disdier, Fontagné, and Cadot 2015;Nimenya, Ndimira, and De Frahan 2012), concurring with this study's findings that the influential factors raise prices of imports and result in negative trade effects. Udbye (2017), in a study of FTAs involving the United States, shows the lack of impression in FTAs to produce spiked and increased exports post-implementation within a few years. ...
The article analyzes the trade and welfare impacts of the EU’s liberalization of frozen orange juice tariff rate quota (TRQ) exports from South Africa to the EU implemented under the Trade, Development and Cooperation Agreement (TDCA). Based on an approach that employs a fill parameter to extrapolate unfilled to filled TRQs in the Global Trade Analysis Project (GTAP) model, the study determines forgone quota rents not captured in the welfare measured in equivalent variation (EV). The results indicate that the forgone quota rent is US$293/ton and US$333/ton at TDCA full implementation and at the end of the TDCA, respectively.
