Product Standards and Margins of Trade: Firm Level Evidence

30 Pages Posted: 5 Apr 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: March 31, 2013

Abstract

We address the trade effect of restrictive product standards on the margins of trade, by matching a detailed panel of French firm exports with a new database compiling the list of Sanitary and Phyto-Sanitary regulatory measures that have been raised as a concern in dedicated committees of the WTO. By using specific trade concerns to capture the degree of restrictiveness of product standards we focus only on standards that are perceived as a barrier to trade. We analyse their effects on three trade related aspects: (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. We find that SPS concerns discourage the presence of French exporters in SPS-imposing foreign markets. We also find a negative effect of SPS imposition on the intensive margins of trade. Finally, the former negative effects of SPS are attenuated for big firms.

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

JEL Classification: F120, F150

Suggested Citation

Fontagne, Lionel and Orefice, Gianluca and Piermartini, Roberta and Rocha, Nadia, Product Standards and Margins of Trade: Firm Level Evidence (March 31, 2013). CESifo Working Paper Series No. 4169, Available at SSRN: https://ssrn.com/abstract=2244787

Lionel Fontagne (Contact Author)

University of Paris 1 Panthéon Sorbonne ( email )

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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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