Chinese Exports and Non-Tariff Measures: Testing for Heterogeneous Effects at the Product Level

25 Pages Posted: 14 Sep 2018

See all articles by Jacopo Timini

Jacopo Timini

Universidad Carlos III de Madrid; Banco de España; Centre for European Policy Studies (CEPS)

Marina Conesa

Inter-American Development Bank (IDB)

Date Written: September 11, 2018

Abstract

Concerns about a possible turn of the global trade policy agenda are on the rise. Indeed, even if tariffs are at a historically low levels, non-tariff measures (NTMs) play an important – and growing – role in global trade policy. In this paper, using a recently released database on NTMs (UNCTAD), and relying on a gravity model, we focus on Chinese exports with two aims in mind: the first is to test for possible heterogeneous effects of different type of NTMs. The second is to verify empirically whether NTMs have larger negative effects for specific set of goods, i.e. final goods. We find that 1) technical NTMs tend to have positive effects on trade flows, whereas non-technical NTMs do not have clear effects at the aggregate level and 2) NTMs have heterogeneous effects at the product level: in the case of final goods, non-technical NTMs have negative and significant effects.

Keywords: international trade, trade policy, non-tariff measures, gravity model, China.

JEL Classification: F13, F14.

Suggested Citation

Timini, Jacopo and Conesa, Marina, Chinese Exports and Non-Tariff Measures: Testing for Heterogeneous Effects at the Product Level (September 11, 2018). Banco de Espana Working Paper No. 1830. Available at SSRN: https://ssrn.com/abstract=3247687 or http://dx.doi.org/10.2139/ssrn.3247687

Jacopo Timini (Contact Author)

Universidad Carlos III de Madrid ( email )

CL. de Madrid 126
Madrid, 28903
Spain

Banco de España

Alcala 50
Madrid 28014
Spain

Centre for European Policy Studies (CEPS) ( email )

1 Place du Congres, 1000
Brussels, 1000
Belgium

Marina Conesa

Inter-American Development Bank (IDB) ( email )

1300 New York Avenue NW
Washington, DC 20577
United States

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