Heterogeneous Impacts of SPS and TBT Regulations : Firm-Level Evidence from Deep Trade Agreements

This paper estimates the impacts of regulating the use of sanitary and phytosanitary and technical barriers to trade measures through preferential trade agreements on exports of firms in Chile, Colombia, and Peru along the firm size spec trum. The...

Full description

Bibliographic Details
Main Authors:	Fernandes, Ana Margarida, Lefebvre, Kevin, Rocha, Nadia
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2021
Subjects:	NON-TARIFF MEASURES PRODUCT STANDARDS PREFERENTIAL TRADE AGREEMENTS EXPORTER DYNAMICS FIRM HETEROGENEITY SANITARY AND PHYTOSANITARY STANDARDS TECHNICAL BARRIERS TO TRADE
Online Access:	http://documents.worldbank.org/curated/en/201121623784576851/Heterogeneous-Impacts-of-SPS-and-TBT-Regulations-Firm-Level-Evidence-from-Deep-Trade-Agreements http://hdl.handle.net/10986/35770

id	okr-10986-35770
recordtype	oai_dc
spelling	okr-10986-357702021-06-18T05:10:57Z Heterogeneous Impacts of SPS and TBT Regulations : Firm-Level Evidence from Deep Trade Agreements Fernandes, Ana Margarida Lefebvre, Kevin Rocha, Nadia NON-TARIFF MEASURES PRODUCT STANDARDS PREFERENTIAL TRADE AGREEMENTS EXPORTER DYNAMICS FIRM HETEROGENEITY SANITARY AND PHYTOSANITARY STANDARDS TECHNICAL BARRIERS TO TRADE This paper estimates the impacts of regulating the use of sanitary and phytosanitary and technical barriers to trade measures through preferential trade agreements on exports of firms in Chile, Colombia, and Peru along the firm size spec trum. The analysis exploits novel data from the World Bank Deep Trade Agreements database and customs covering the universe of exporting firms in each country over 1996–2015. The paper uses a firm-product gravity equation with a stringent set of fixed effects and controls for the overall depth of the preferential trade agreements and product-specific bilateral tariffs. The findings show that firms’ exports increase significantly in destination markets with preferential trade agreements, including a larger number of sanitary and phytosanitary and technical barriers to trade provisions, and the effect is stronger for smaller firms. Provisions for the harmonization of sanitary and phytosanitary regulations in preferential trade agreements also have greater benefits for the exports of smaller firms, and so do preferential trade agreements, including stronger transparency provisions for sanitary and phytosanitary and technical barriers to trade regulations. The results are robust to dropping larger exporters and highly concentrated export sectors to address endogeneity. The benefits of sanitary and phytosanitary and technical barriers to trade provisions are mainly driven by sectors with more heavily-regulated products. Entry into new product markets and increases in export quality partly explain the rising exports of smaller firms. Finally, the estimated impacts are similar regardless of the income level of the preferential trade agreement partners. 2021-06-17T16:35:17Z 2021-06-17T16:35:17Z 2021-06 Working Paper http://documents.worldbank.org/curated/en/201121623784576851/Heterogeneous-Impacts-of-SPS-and-TBT-Regulations-Firm-Level-Evidence-from-Deep-Trade-Agreements http://hdl.handle.net/10986/35770 English Policy Research Working Paper;No. 9700 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Latin America & Caribbean Chile Colombia Peru
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	NON-TARIFF MEASURES PRODUCT STANDARDS PREFERENTIAL TRADE AGREEMENTS EXPORTER DYNAMICS FIRM HETEROGENEITY SANITARY AND PHYTOSANITARY STANDARDS TECHNICAL BARRIERS TO TRADE
spellingShingle	NON-TARIFF MEASURES PRODUCT STANDARDS PREFERENTIAL TRADE AGREEMENTS EXPORTER DYNAMICS FIRM HETEROGENEITY SANITARY AND PHYTOSANITARY STANDARDS TECHNICAL BARRIERS TO TRADE Fernandes, Ana Margarida Lefebvre, Kevin Rocha, Nadia Heterogeneous Impacts of SPS and TBT Regulations : Firm-Level Evidence from Deep Trade Agreements
geographic_facet	Latin America & Caribbean Chile Colombia Peru
relation	Policy Research Working Paper;No. 9700
description	This paper estimates the impacts of regulating the use of sanitary and phytosanitary and technical barriers to trade measures through preferential trade agreements on exports of firms in Chile, Colombia, and Peru along the firm size spec trum. The analysis exploits novel data from the World Bank Deep Trade Agreements database and customs covering the universe of exporting firms in each country over 1996–2015. The paper uses a firm-product gravity equation with a stringent set of fixed effects and controls for the overall depth of the preferential trade agreements and product-specific bilateral tariffs. The findings show that firms’ exports increase significantly in destination markets with preferential trade agreements, including a larger number of sanitary and phytosanitary and technical barriers to trade provisions, and the effect is stronger for smaller firms. Provisions for the harmonization of sanitary and phytosanitary regulations in preferential trade agreements also have greater benefits for the exports of smaller firms, and so do preferential trade agreements, including stronger transparency provisions for sanitary and phytosanitary and technical barriers to trade regulations. The results are robust to dropping larger exporters and highly concentrated export sectors to address endogeneity. The benefits of sanitary and phytosanitary and technical barriers to trade provisions are mainly driven by sectors with more heavily-regulated products. Entry into new product markets and increases in export quality partly explain the rising exports of smaller firms. Finally, the estimated impacts are similar regardless of the income level of the preferential trade agreement partners.
format	Working Paper
author	Fernandes, Ana Margarida Lefebvre, Kevin Rocha, Nadia
author_facet	Fernandes, Ana Margarida Lefebvre, Kevin Rocha, Nadia
author_sort	Fernandes, Ana Margarida
title	Heterogeneous Impacts of SPS and TBT Regulations : Firm-Level Evidence from Deep Trade Agreements
title_short	Heterogeneous Impacts of SPS and TBT Regulations : Firm-Level Evidence from Deep Trade Agreements
title_full	Heterogeneous Impacts of SPS and TBT Regulations : Firm-Level Evidence from Deep Trade Agreements
title_fullStr	Heterogeneous Impacts of SPS and TBT Regulations : Firm-Level Evidence from Deep Trade Agreements
title_full_unstemmed	Heterogeneous Impacts of SPS and TBT Regulations : Firm-Level Evidence from Deep Trade Agreements
title_sort	heterogeneous impacts of sps and tbt regulations : firm-level evidence from deep trade agreements
publisher	World Bank, Washington, DC
publishDate	2021
url	http://documents.worldbank.org/curated/en/201121623784576851/Heterogeneous-Impacts-of-SPS-and-TBT-Regulations-Firm-Level-Evidence-from-Deep-Trade-Agreements http://hdl.handle.net/10986/35770
_version_	1764483740393799680

Heterogeneous Impacts of SPS and TBT Regulations : Firm-Level Evidence from Deep Trade Agreements

Similar Items