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Non-Tariff Measures and the Quality of Imported Products

Published online by Cambridge University Press:  29 September 2021

Mahdi Ghodsi  and
Robert Stehrer
Mahdi Ghodsi*
Affiliation:
The Vienna Institute for International Economic Studies (wiiw), Vienna University of Economics and Business (WU), Rahlgasse 3, A-1060 Vienna, Austria
Robert Stehrer
Affiliation:
The Vienna Institute for International Economic Studies (wiiw), Vienna University of Economics and Business (WU), Rahlgasse 3, A-1060 Vienna, Austria
*
*Corresponding author: Email: ghoEdsi@wiiw.ac.at
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Abstract

Legitimate reasons for the imposition of non-tariff measures (NTMs) within regulations have triggered their extensive use. Among these measures, technical barriers to trade (TBTs) and sanitary and phytosanitary (SPS) measures allow countries to impose restrictions on the import of low-quality products suspected of harming domestic consumers’ health, plant life, or the environment. This paper analyses two regulative and standard-like NTMs – TBTs and SPS measures – and the quality of traded products that is driven by their imposition, which is a general underlying motive for the adoption of such regulations. A dummy variable measuring the existence of these NTMs and a count variable indicating their stringency are used in the analysis. Moreover, two other variables indicate flows of NTMs imposed in each year and stocks of these NTMs accumulated over years. The results indicate that TBTs and SPS measures do indeed imply a higher quality of traded products. Stringent TBTs with more regulations imposed in each year (i.e. flows of count TBTs) have the largest impact on the quality of traded products. However, for SPS measures, only the existence of a regulation (i.e. the dummy variable on flows of SPS measures) on a traded product has the strongest impact on its quality.

Keywords

F13F14L15Non-tariff measurestechnical barriers to tradesanitary and phytosanitary measuresquality of productsglobal bilateral trade
Type
Original Article
Information
World Trade Review , Volume 21 , Issue 1 , February 2022 , pp. 71 - 92
Copyright
Copyright © Mahdi Ghodsi and Robert Stehrer 2021

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