Estimating the Impact of Non-Tariff Measures on Trade: New Evidence from 40 developing countries

Volume 21 , Issue 2 , November 2020 , Pages 573-583

Authors

Masoud Ali Khalid 1 ; Narmen M. Ghafor 2 ; Mohammad Mahmood Faqe Hussein 3

1 Corresponding Author: Department of Banking and Financial Science, Cihan University/ Sulaimani.

2 Department of Economics, University of Sulaimani.

3 Department of Statistics and Informatics, University of Sulaimani.

DOI logo 10.17656/jzsb.11032

Keywords

Abstract

Non-tariff measures (NTMs) such as food safety standards are used to achieve the non-trade
objective of protecting consumers’ safety and health. Nevertheless, they can also be used as a trade
protection tool to drive a price wedge between foreign and domestic producers. This study
investigates the impact of NTMs on trade in the developing countries over the period of 1999 to 2014
with a specific focus on Plastic, Vehicle, Animal, and Vegetable commodities. We formalize what
protectionism is by comparing standards to the internationally scientific referenced benchmarks
regulated jointly by both the Food and Agricultural Organization and the World Health Organization.
Our results show that the animal and vehicle commodityare less dependent on imports and is
overprotected by more stringent standards relative to the international benchmarks. Conversely, we
find that the other variables are not under-protected relative to the international standards. These
results largely support the hypothesis that heavily import dependent sectors are less protected.

References

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  • First online25 November 2020
  • Published at25 November 2020

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