Product Standards and Margins of Trade: Firm Level Evidence

By Lionel Fontagné, G. Orefice, R. Piermartini, N. Rocha. Social Science Research Network, 2015

251 citations recorded by the source corpus.

This paper analyses the trade effects of restrictive product standards on the margins of trade for a large panel of French firms. To focus on restrictive product standards only, we use a new database compiling the list of measures that have been raised as concerns in dedicated committees of the WTO. We restrict our analysis to the subset of Sanitary and Phyto-Sanitary (SPS) regulatory measures and analyse the effects of product standards on three variables: (i) probability to export and to exit the export market (firm-product extensive margins), (ii) value exported (firm-product intensive margin) and (iii) export prices. In particular we study whether firms size, market shares and export orientation modify the effect of SPS measures. We find that SPS measures discourage exports. We also find a negative effect of SPS imposition on the intensive margins of trade. Finally, the negative effects of SPS measures on the extensive and intensive margins of trade are attenuated for big firms.

Subfields: Economics and Econometrics, Political Science and International Relations, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/fc370fea8e338fdaf81b84935a1a6df1fa8af34b

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

  1. Michele Ruta
  2. Aaditya Mattoo
  3. N. Rocha
  4. Bernard M. Hoekman

In Political Science and International Relations

  1. Michele Ruta
  2. Aaditya Mattoo
  3. N. Rocha

In Strategy and Management

  1. Michele Ruta
  2. Aaditya Mattoo
  3. N. Rocha

Citations in the corpus