The Costs of Trade Protectionism: Evidence from Spanish Firms and Non-Tariff Measures
35 Pages Posted: 7 Jun 2018
Date Written: June 1, 2018
The rise in non-tariff protectionist measures has been associated to the weakness in global trade over the last few years. We investigate the effect of non-tariff barriers (NTBs) on exports growth over the period 2009-2013 using administrative data at the firm-product-destination level in Spain. According to our findings, non-tariff protectionist measures significantly reduce exports growth at the product-destination level. Moreover, NTBs also hinder exports growth at the firm level and negatively affect other firm outcomes such as productivity growth. In contrast, the impact of liberalizing non-tariff measures is not statistically significant.
Keywords: protectionism, non-tariff measures, firm level data
JEL Classification: F10, F30, F40, G15, G21, G32
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