Product Standards and Margins of Trade: Firm Level Evidence

CEPII Centre D'Etudes Prospectives et D'Information Internationales, WP No. 2013-06

40 Pages Posted: 12 Mar 2013

See all articles by Lionel Fontagne

Lionel Fontagne

University of Paris 1 Panthéon Sorbonne; Paris School of Economics; CEPII

Gianluca Orefice

Centre d'Etudes Prospectives et d'Info. Internationales (CEPII)

Roberta Piermartini

World Trade Organization (WTO) - Economic Research and Analysis Division

Nadia Rocha

World Trade Organization

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Date Written: February 28, 2013

Abstract

This paper analyses the trade effects of restrictive product standards on the margins of trade for a large panel of French firms. To focus on restrictive product standards only, we use a new database compiling the list of measures that have been raised as concerns in dedicated committees of the WTO. We restrict our analysis to the subset of Sanitary and Phyto-Sanitary (SPS) regulatory measures and analyse the effects of product standards on three variables: (i) probability to export and to exit the export market (firm-product extensive margins), (ii) value exported (firm-product intensive margin) and (iii) export prices. In particular we study whether firms size, market shares and export orientation modify the effect of SPS measures. We find that SPS measures discourage exports. We also find a negative effect of SPS imposition on the intensive margins of trade. Finally, the negative effects of SPS measures on the extensive and intensive margins of trade are attenuated for big firms.

Note: Downloadable document is in French and Engish.

Keywords: International trade, firm heterogeneity, multi-product exporters, non-tariff barriers

JEL Classification: F12, F15

Suggested Citation

Fontagne, Lionel and Orefice, Gianluca and Piermartini, Roberta and Rocha, Nadia, Product Standards and Margins of Trade: Firm Level Evidence (February 28, 2013). CEPII Centre D'Etudes Prospectives et D'Information Internationales, WP No. 2013-06, Available at SSRN: https://ssrn.com/abstract=2231528 or http://dx.doi.org/10.2139/ssrn.2231528

Lionel Fontagne (Contact Author)

University of Paris 1 Panthéon Sorbonne ( email )

Maison des Sciences Economiques
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Paris, 75013
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Paris School of Economics ( email )

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HOME PAGE: http://lionelfontagne.weebly.com/

CEPII ( email )

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+33 1 53 68 55 06 (Phone)

HOME PAGE: http://lionelfontagne.weebly.com/

Gianluca Orefice

Centre d'Etudes Prospectives et d'Info. Internationales (CEPII) ( email )

9 rue Georges Pitard
Paris Cedex 15, F-75015
France

Roberta Piermartini

World Trade Organization (WTO) - Economic Research and Analysis Division ( email )

Rue de Lausanne 154
CH-1211 Geneva
Switzerland
+41 22 739 5492 (Phone)
+41 22 739 5762 (Fax)

Nadia Rocha

World Trade Organization ( email )

Rue de Lausanne 154
CH-1211 Geneva
Switzerland

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