The Costs of Trade Protectionism: Evidence from Spanish Firms and Non-Tariff Measures

Abstract

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