TBT and SPS Impacts on Korean Exports to China: Empirical Analysis Using the PPML Method

19 Pages Posted: 27 Nov 2017

See all articles by Jacob Wood

Jacob Wood

Chungnam National University

Jie Wu

Chungnam National University

Yilin Li

Chungnam National University

Jungsuk Kim

Sogang University - Institute of International and Area Studies

Date Written: November 2017

Abstract

Since diplomatic relations were established between China and Korea, the two countries have expanded their relationships, especially in trading commodities and services. However, in recent years, as tariff levels have fallen, China has sought to implement other protectionist mechanisms. The use of non‐tariff measures has added another dimension to international trade activities that need to be better understood. The paper analyses the impacts that two forms of non‐tariff measures, technical barriers to trade (TBT) and sanitary and phytosanitary measures, have on Korean exports to China. To measure the impacts, we use an adapted version of the gravity model and the Poisson pseudo‐maximum likelihood method. The results show that Chinese sanitary and phytosanitary measures, estimated using both the coverage ratio and the frequency index, have positive correlations with Korean agricultural exports; however, Chinese TBT measures, when estimated by the coverage ratio, were found to depress Korean manufacturing exports and exports as a whole. However, using the frequency index, Chinese TBT measures were found to have a statistically insignificant negative impact on Korean exports to China.

Suggested Citation

Wood, Jacob and Wu, Jie and Li, Yilin and Kim, Jungsuk, TBT and SPS Impacts on Korean Exports to China: Empirical Analysis Using the PPML Method (November 2017). Asian‐Pacific Economic Literature, Vol. 31, Issue 2, pp. 96-114, 2017, Available at SSRN: https://ssrn.com/abstract=3077078 or http://dx.doi.org/10.1111/apel.12186

Jacob Wood

Chungnam National University

Daejon, 34134
Korea, Republic of (South Korea)

Jie Wu (Contact Author)

Chungnam National University

Daejon, 34134
Korea, Republic of (South Korea)

Yilin Li

Chungnam National University

Daejon, 34134
Korea, Republic of (South Korea)

Jungsuk Kim

Sogang University - Institute of International and Area Studies ( email )

35 Baekbeom-ro
Mapo-gu
Seoul, Seoul 121-742
Korea, Republic of (South Korea)

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