Trade Effects of Regional Standards Liberalization : A Heterogeneous Firms Approach

This study investigates trade effects of the regional liberalization of technical barriers to trade (TBTs) in the form of harmonization and mutual recognition agreements (MRAs) for testing procedures. The theoretical part of the paper is framed in...

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Main Author: Baller, Silja
Format: Policy Research Working Paper
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
WTO
Online Access:http://documents.worldbank.org/curated/en/2007/02/7401769/trade-effects-regional-standards-liberalization-heterogeneous-firms-approach
http://hdl.handle.net/10986/7156
id okr-10986-7156
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ABOLISHING TARIFFS
ASYMMETRIC INFORMATION
AVERAGE PRODUCTIVITY
BILATERAL TRADE
BILATERAL TRADE FLOWS
COMMON STANDARDS
COMPETITION POLICY
COMPLETE HARMONIZATION
CONFORMITY ASSESSMENT
CONFORMITY ASSESSMENT PROCEDURES
CONSTANT ELASTICITY OF SUBSTITUTION
CONSUMER PREFERENCES
CONSUMER PROTECTION
CONVERGENCE
COUNTRY PRODUCERS
CUSTOMS
CUSTOMS PROCEDURES
DISPUTE SETTLEMENT
DOMESTIC MARKET
DOMESTIC REGULATIONS
ECONOMIC GEOGRAPHY
ECONOMIES OF SCALE
ELASTICITY
ELASTICITY OF SUBSTITUTION
ENVIRONMENTAL STANDARDS
EXPENDITURE
EXPORT MARKET
EXPORT MARKETS
EXPORT PERFORMANCE
EXPORTERS
EXPORTING COUNTRY
EXPORTS
EXTERNALITY
FAX MACHINES
FIXED COSTS
FOREIGN INDUSTRIES
FOREIGN INVESTMENT
FOREIGN MARKET
FOREIGN MARKETS
FOREIGN PRODUCERS
FREE ENTRY
GLOBAL TRADE
GOVERNMENT REGULATION
GRAVITY EQUATION
HARMONIZATION
HARMONIZATION DIRECTIVES
HOME MARKET
IMPORTING COUNTRY
INCREASING RETURNS
INCREASING RETURNS TO SCALE
INEFFICIENCY
INTEGRATED MARKETS
INTERNAL TARIFFS
INTERNATIONAL STANDARD
INTERNATIONAL STANDARDS
INTERNATIONAL TRADE
INTRA-REGIONAL TRADE
LABOR STANDARDS
LIBERALIZATION EFFORTS
LOCAL CONSUMERS
MARGINAL COST
MARGINAL COST OF PRODUCTION
MARKET ENTRY
MARKET ENTRY COSTS
MARKET FAILURE
MARKET FAILURES
MARKET FORCES
MARKET INTEGRATION
MARKET MECHANISM
MARKET SHARES
MARKETING
MODELING
MONOPOLISTIC COMPETITION
MUTUAL RECOGNITION
MUTUAL RECOGNITION AGREEMENTS
MUTUAL RECOGNITION OF STANDARDS
NATIONAL BORDERS
NATIONAL MARKETS
NATIONAL REGULATORY REGIMES
NATIONAL STANDARDS
NEGATIVE EXTERNALITIES
NON-TARIFF BARRIERS
PACIFIC REGION
PARTNER COUNTRIES
PATENTS
PREFERENTIAL AGREEMENTS
PREFERENTIAL LIBERALIZATION
PRIVATE SECTOR
PRODUCT CYCLE
PRODUCT QUALITY
PRODUCT STANDARDS
PRODUCTION COSTS
PRODUCTION PROCESS
PRODUCTIVITY
REGIONAL LIBERALIZATION
REGIONAL STANDARD
REGIONAL STANDARDS
REGIONAL TRADING ARRANGEMENTS
REGULATORY OBJECTIVES
REGULATORY REGIME
REGULATORY REGIMES
RESEARCH WORKING PAPERS
RESEARCHERS
RULES OF ORIGIN
SAFETY STANDARDS
SALE
SALES
SIDE EFFECTS
SPREAD
STANDARD SETTING
STANDARDS REGIMES
SUNK COSTS
SUPPLIER
SUPPLIERS
TECHNICAL BARRIERS
TECHNICAL REGULATIONS
TESTING LABORATORIES
TRADE BARRIERS
TRADE COSTS
TRADE DIVERSION
TRADE EFFECT
TRADE EFFECTS
TRADE FACILITATION
TRADE MODELS
TRADE THEORY
TRADE VOLUMES
TRADING PARTNERS
TRANSPORT COSTS
UNILATERAL RECOGNITION
UTILITY FUNCTION
VARIABLE COSTS
VOLUME OF TRADE
WEALTH
WTO
spellingShingle ABOLISHING TARIFFS
ASYMMETRIC INFORMATION
AVERAGE PRODUCTIVITY
BILATERAL TRADE
BILATERAL TRADE FLOWS
COMMON STANDARDS
COMPETITION POLICY
COMPLETE HARMONIZATION
CONFORMITY ASSESSMENT
CONFORMITY ASSESSMENT PROCEDURES
CONSTANT ELASTICITY OF SUBSTITUTION
CONSUMER PREFERENCES
CONSUMER PROTECTION
CONVERGENCE
COUNTRY PRODUCERS
CUSTOMS
CUSTOMS PROCEDURES
DISPUTE SETTLEMENT
DOMESTIC MARKET
DOMESTIC REGULATIONS
ECONOMIC GEOGRAPHY
ECONOMIES OF SCALE
ELASTICITY
ELASTICITY OF SUBSTITUTION
ENVIRONMENTAL STANDARDS
EXPENDITURE
EXPORT MARKET
EXPORT MARKETS
EXPORT PERFORMANCE
EXPORTERS
EXPORTING COUNTRY
EXPORTS
EXTERNALITY
FAX MACHINES
FIXED COSTS
FOREIGN INDUSTRIES
FOREIGN INVESTMENT
FOREIGN MARKET
FOREIGN MARKETS
FOREIGN PRODUCERS
FREE ENTRY
GLOBAL TRADE
GOVERNMENT REGULATION
GRAVITY EQUATION
HARMONIZATION
HARMONIZATION DIRECTIVES
HOME MARKET
IMPORTING COUNTRY
INCREASING RETURNS
INCREASING RETURNS TO SCALE
INEFFICIENCY
INTEGRATED MARKETS
INTERNAL TARIFFS
INTERNATIONAL STANDARD
INTERNATIONAL STANDARDS
INTERNATIONAL TRADE
INTRA-REGIONAL TRADE
LABOR STANDARDS
LIBERALIZATION EFFORTS
LOCAL CONSUMERS
MARGINAL COST
MARGINAL COST OF PRODUCTION
MARKET ENTRY
MARKET ENTRY COSTS
MARKET FAILURE
MARKET FAILURES
MARKET FORCES
MARKET INTEGRATION
MARKET MECHANISM
MARKET SHARES
MARKETING
MODELING
MONOPOLISTIC COMPETITION
MUTUAL RECOGNITION
MUTUAL RECOGNITION AGREEMENTS
MUTUAL RECOGNITION OF STANDARDS
NATIONAL BORDERS
NATIONAL MARKETS
NATIONAL REGULATORY REGIMES
NATIONAL STANDARDS
NEGATIVE EXTERNALITIES
NON-TARIFF BARRIERS
PACIFIC REGION
PARTNER COUNTRIES
PATENTS
PREFERENTIAL AGREEMENTS
PREFERENTIAL LIBERALIZATION
PRIVATE SECTOR
PRODUCT CYCLE
PRODUCT QUALITY
PRODUCT STANDARDS
PRODUCTION COSTS
PRODUCTION PROCESS
PRODUCTIVITY
REGIONAL LIBERALIZATION
REGIONAL STANDARD
REGIONAL STANDARDS
REGIONAL TRADING ARRANGEMENTS
REGULATORY OBJECTIVES
REGULATORY REGIME
REGULATORY REGIMES
RESEARCH WORKING PAPERS
RESEARCHERS
RULES OF ORIGIN
SAFETY STANDARDS
SALE
SALES
SIDE EFFECTS
SPREAD
STANDARD SETTING
STANDARDS REGIMES
SUNK COSTS
SUPPLIER
SUPPLIERS
TECHNICAL BARRIERS
TECHNICAL REGULATIONS
TESTING LABORATORIES
TRADE BARRIERS
TRADE COSTS
TRADE DIVERSION
TRADE EFFECT
TRADE EFFECTS
TRADE FACILITATION
TRADE MODELS
TRADE THEORY
TRADE VOLUMES
TRADING PARTNERS
TRANSPORT COSTS
UNILATERAL RECOGNITION
UTILITY FUNCTION
VARIABLE COSTS
VOLUME OF TRADE
WEALTH
WTO
Baller, Silja
Trade Effects of Regional Standards Liberalization : A Heterogeneous Firms Approach
relation Policy Research Working Paper; No. 4124
description This study investigates trade effects of the regional liberalization of technical barriers to trade (TBTs) in the form of harmonization and mutual recognition agreements (MRAs) for testing procedures. The theoretical part of the paper is framed in terms of a heterogeneous firms approach. This paper adds to the existing literature by formalizing the effects of MRAs and harmonization initiatives on bilateral trade flows and by applying this new theoretical framework in the empirical part of the paper. The latter consists of a two-stage gravity estimation and investigates sectoral effects of TBT liberalization on parties to the agreement as well as excluded industrial and developing countries. It finds that MRAs have a strong positive influence on both export probabilities and trade volumes for partner countries. Regarding harmonization, results seem to suggest that the impact on parties to the agreement is negligible, however that on excluded OECD countries is large and positive. Third party developing countries do not seem to benefit from the market integration effect brought about by harmonization in other regions. Overall, effects on the probability that a new firm will export are much more pronounced than effects on the trade volumes of incumbent exporters.
format Publications & Research :: Policy Research Working Paper
author Baller, Silja
author_facet Baller, Silja
author_sort Baller, Silja
title Trade Effects of Regional Standards Liberalization : A Heterogeneous Firms Approach
title_short Trade Effects of Regional Standards Liberalization : A Heterogeneous Firms Approach
title_full Trade Effects of Regional Standards Liberalization : A Heterogeneous Firms Approach
title_fullStr Trade Effects of Regional Standards Liberalization : A Heterogeneous Firms Approach
title_full_unstemmed Trade Effects of Regional Standards Liberalization : A Heterogeneous Firms Approach
title_sort trade effects of regional standards liberalization : a heterogeneous firms approach
publisher World Bank, Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/2007/02/7401769/trade-effects-regional-standards-liberalization-heterogeneous-firms-approach
http://hdl.handle.net/10986/7156
_version_ 1764401513338241024
spelling okr-10986-71562021-04-23T14:02:33Z Trade Effects of Regional Standards Liberalization : A Heterogeneous Firms Approach Baller, Silja ABOLISHING TARIFFS ASYMMETRIC INFORMATION AVERAGE PRODUCTIVITY BILATERAL TRADE BILATERAL TRADE FLOWS COMMON STANDARDS COMPETITION POLICY COMPLETE HARMONIZATION CONFORMITY ASSESSMENT CONFORMITY ASSESSMENT PROCEDURES CONSTANT ELASTICITY OF SUBSTITUTION CONSUMER PREFERENCES CONSUMER PROTECTION CONVERGENCE COUNTRY PRODUCERS CUSTOMS CUSTOMS PROCEDURES DISPUTE SETTLEMENT DOMESTIC MARKET DOMESTIC REGULATIONS ECONOMIC GEOGRAPHY ECONOMIES OF SCALE ELASTICITY ELASTICITY OF SUBSTITUTION ENVIRONMENTAL STANDARDS EXPENDITURE EXPORT MARKET EXPORT MARKETS EXPORT PERFORMANCE EXPORTERS EXPORTING COUNTRY EXPORTS EXTERNALITY FAX MACHINES FIXED COSTS FOREIGN INDUSTRIES FOREIGN INVESTMENT FOREIGN MARKET FOREIGN MARKETS FOREIGN PRODUCERS FREE ENTRY GLOBAL TRADE GOVERNMENT REGULATION GRAVITY EQUATION HARMONIZATION HARMONIZATION DIRECTIVES HOME MARKET IMPORTING COUNTRY INCREASING RETURNS INCREASING RETURNS TO SCALE INEFFICIENCY INTEGRATED MARKETS INTERNAL TARIFFS INTERNATIONAL STANDARD INTERNATIONAL STANDARDS INTERNATIONAL TRADE INTRA-REGIONAL TRADE LABOR STANDARDS LIBERALIZATION EFFORTS LOCAL CONSUMERS MARGINAL COST MARGINAL COST OF PRODUCTION MARKET ENTRY MARKET ENTRY COSTS MARKET FAILURE MARKET FAILURES MARKET FORCES MARKET INTEGRATION MARKET MECHANISM MARKET SHARES MARKETING MODELING MONOPOLISTIC COMPETITION MUTUAL RECOGNITION MUTUAL RECOGNITION AGREEMENTS MUTUAL RECOGNITION OF STANDARDS NATIONAL BORDERS NATIONAL MARKETS NATIONAL REGULATORY REGIMES NATIONAL STANDARDS NEGATIVE EXTERNALITIES NON-TARIFF BARRIERS PACIFIC REGION PARTNER COUNTRIES PATENTS PREFERENTIAL AGREEMENTS PREFERENTIAL LIBERALIZATION PRIVATE SECTOR PRODUCT CYCLE PRODUCT QUALITY PRODUCT STANDARDS PRODUCTION COSTS PRODUCTION PROCESS PRODUCTIVITY REGIONAL LIBERALIZATION REGIONAL STANDARD REGIONAL STANDARDS REGIONAL TRADING ARRANGEMENTS REGULATORY OBJECTIVES REGULATORY REGIME REGULATORY REGIMES RESEARCH WORKING PAPERS RESEARCHERS RULES OF ORIGIN SAFETY STANDARDS SALE SALES SIDE EFFECTS SPREAD STANDARD SETTING STANDARDS REGIMES SUNK COSTS SUPPLIER SUPPLIERS TECHNICAL BARRIERS TECHNICAL REGULATIONS TESTING LABORATORIES TRADE BARRIERS TRADE COSTS TRADE DIVERSION TRADE EFFECT TRADE EFFECTS TRADE FACILITATION TRADE MODELS TRADE THEORY TRADE VOLUMES TRADING PARTNERS TRANSPORT COSTS UNILATERAL RECOGNITION UTILITY FUNCTION VARIABLE COSTS VOLUME OF TRADE WEALTH WTO This study investigates trade effects of the regional liberalization of technical barriers to trade (TBTs) in the form of harmonization and mutual recognition agreements (MRAs) for testing procedures. The theoretical part of the paper is framed in terms of a heterogeneous firms approach. This paper adds to the existing literature by formalizing the effects of MRAs and harmonization initiatives on bilateral trade flows and by applying this new theoretical framework in the empirical part of the paper. The latter consists of a two-stage gravity estimation and investigates sectoral effects of TBT liberalization on parties to the agreement as well as excluded industrial and developing countries. It finds that MRAs have a strong positive influence on both export probabilities and trade volumes for partner countries. Regarding harmonization, results seem to suggest that the impact on parties to the agreement is negligible, however that on excluded OECD countries is large and positive. Third party developing countries do not seem to benefit from the market integration effect brought about by harmonization in other regions. Overall, effects on the probability that a new firm will export are much more pronounced than effects on the trade volumes of incumbent exporters. 2012-06-05T18:46:27Z 2012-06-05T18:46:27Z 2007-02 http://documents.worldbank.org/curated/en/2007/02/7401769/trade-effects-regional-standards-liberalization-heterogeneous-firms-approach http://hdl.handle.net/10986/7156 English Policy Research Working Paper; No. 4124 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research