Non-Tariff Measures, Import Competition, and Exports

The empirical evidence on the impact of import competition on economic performance relies mainly on import tariff liberalization as the source of changes to competition. This paper extends this evidence by focusing on non-tariff measures, an increa...

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Main Authors:	Cali, Massimiliano, Montfaucon, Angella Faith
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2021
Subjects:	NON-TARIFF MEASURES IMPORT COMPETITION EXPORT PERFORMANCE FIRM PERFORMANCE
Online Access:	http://documents.worldbank.org/curated/undefined/994091633707638412/Non-Tariff-Measures-Import-Competition-and-Exports http://hdl.handle.net/10986/36387

id	okr-10986-36387
recordtype	oai_dc
spelling	okr-10986-363872021-10-15T05:10:32Z Non-Tariff Measures, Import Competition, and Exports Cali, Massimiliano Montfaucon, Angella Faith NON-TARIFF MEASURES IMPORT COMPETITION EXPORT PERFORMANCE FIRM PERFORMANCE The empirical evidence on the impact of import competition on economic performance relies mainly on import tariff liberalization as the source of changes to competition. This paper extends this evidence by focusing on non-tariff measures, an increasingly important trade policy tool globally. The analysis examines the competition effect of four specific non-tariff measures on the exporting activity of the universe of Indonesian firms. The focus is on measures that do not clearly address any negative externalities of imports—the supposed objective of non-tariff measures—and hence appear to be protectionist in nature. The results suggest that by restricting import competition, these measures reduce the survival of firms in export markets as well as the intensive and extensive margins of their exports. Non-tariff measures have a more negative effect than import tariffs in most cases and these results are robust to various checks. The analysis provides suggestive evidence that markups are an important channel through which these effects are mediated. 2021-10-14T13:55:52Z 2021-10-14T13:55:52Z 2021-10 Working Paper http://documents.worldbank.org/curated/undefined/994091633707638412/Non-Tariff-Measures-Import-Competition-and-Exports http://hdl.handle.net/10986/36387 English Policy Research Working Paper;No. 9801 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 East Asia and Pacific Indonesia
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 IMPORT COMPETITION EXPORT PERFORMANCE FIRM PERFORMANCE
spellingShingle	NON-TARIFF MEASURES IMPORT COMPETITION EXPORT PERFORMANCE FIRM PERFORMANCE Cali, Massimiliano Montfaucon, Angella Faith Non-Tariff Measures, Import Competition, and Exports
geographic_facet	East Asia and Pacific Indonesia
relation	Policy Research Working Paper;No. 9801
description	The empirical evidence on the impact of import competition on economic performance relies mainly on import tariff liberalization as the source of changes to competition. This paper extends this evidence by focusing on non-tariff measures, an increasingly important trade policy tool globally. The analysis examines the competition effect of four specific non-tariff measures on the exporting activity of the universe of Indonesian firms. The focus is on measures that do not clearly address any negative externalities of imports—the supposed objective of non-tariff measures—and hence appear to be protectionist in nature. The results suggest that by restricting import competition, these measures reduce the survival of firms in export markets as well as the intensive and extensive margins of their exports. Non-tariff measures have a more negative effect than import tariffs in most cases and these results are robust to various checks. The analysis provides suggestive evidence that markups are an important channel through which these effects are mediated.
format	Working Paper
author	Cali, Massimiliano Montfaucon, Angella Faith
author_facet	Cali, Massimiliano Montfaucon, Angella Faith
author_sort	Cali, Massimiliano
title	Non-Tariff Measures, Import Competition, and Exports
title_short	Non-Tariff Measures, Import Competition, and Exports
title_full	Non-Tariff Measures, Import Competition, and Exports
title_fullStr	Non-Tariff Measures, Import Competition, and Exports
title_full_unstemmed	Non-Tariff Measures, Import Competition, and Exports
title_sort	non-tariff measures, import competition, and exports
publisher	World Bank, Washington, DC
publishDate	2021
url	http://documents.worldbank.org/curated/undefined/994091633707638412/Non-Tariff-Measures-Import-Competition-and-Exports http://hdl.handle.net/10986/36387
_version_	1764485138940428288

Non-Tariff Measures, Import Competition, and Exports

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