GTAP Resources: Resource Display
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"Product standards and margins of trade: Firm level evidence" by Fontagné, Lionel, Gianluca Orefice, Roberta Piermartini and Nadia Rocha Abstract Using a detailed dataset of French firms exports for the period 1995-2005 and a new database on specific trade concerns raised in the TBT and SPS committees at the WTO, this paper analyses the trade effect of restrictive product standards on the extensive and the intensive margin of trade. The advantage of using specific trade concerns as an index of the degree of restrictiveness of product standards is that it focuses only on those product standards that are perceived to represent a barrier to trade, thus overcoming a measure limitation of existing measures of non-tariff measures. We analyse the effects of product standards on three trade related aspects: (i) probability to export (firm-product extensive margin), (ii) value exported (firm-product intensive margin) and (iii) pricing strategy (upgrading versus pricing to market). Moreover we look at how firms’ market shares, orientation of French exports, and comparative advantage modify the effect of SPS. We find that SPS concern discourages the presence of French firms in SPS-imposing foreign markets, this effect is amplified for big firms. On the other hand, intensive margin is not significantly affected. |
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- European Union |
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Public Access  GTAP Resource 3845 (299.4 KB) Replicated: 0 time(s)Restricted Access No documents have been attached. Special Instructions No instructions have been specified. |
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Last Modified: 9/15/2023 2:05:45 PM
