| Chinese Exports and Non-Tariff Measures: Testing for Heterogeneous Effects at the Product Level |
Jacopo Timini 1 and Marina Conesa 2 |
1Banco de España, Spain
2Inter-American Development Bank, US |
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Corresponding Author:
Jacopo Timini ,Email: jacopo.timini@gmail.com |
| Copyright ©2019 Journal of Economic Integration |
| ABSTRACT |
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With international trade tariffs at historically low levels today, non-tariff measures (NTMs) play an important—and growing—role in global trade policy. Concerns about shifts in global trade policy agendas are on the rise. In this paper, we rely on a gravity model and focus on Chinese exports with two aims: the first is to test for heterogeneous effects of technical NTMs versus non-technical NTMs; the second is to verify whether the NTM’s effect is influenced by the type of good (final good vs. intermediate or capital good). We find that: 1) technical NTMs tend to have positive effects on trade flows, potentially driven by improvements in consumers’ confidence and by the technical capacities of Chinese exporters and 2) non-technical NTMs are particularly stringent for final goods, possibly due to political economy reasons or substitution effects.
JEL Classification
F13: Trade Policy; International Trade Organizations
F14: Empirical Studies of Trade |
| Keywords:
International trade | Trade policy | Non-tariff measures | Gravity model
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