Impact of Regulatory Burdens on International Trade

Kaoru Nabeshima, Ayako Obashi

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)

Abstract

In this paper, we develop the additional compliance requirement indicator (ACRI) to quantify the extra regulatory requirements that an exporter may face when serving the foreign country's market. The higher the value of ACRI, the greater the difference between the sets of technical measures in the destination and origin countries. Employing the ACRI, we estimate the impact on trade of regulatory burdens via product-level bilateral gravity equations. We find a significant negative impact of regulatory burdens on bilateral trade for a full sample, but the estimated trade effects vary across sectors and depend on the development levels of the trading countries.

Original languageEnglish
Article number101120
JournalJournal of The Japanese and International Economies
Volume59
DOIs
Publication statusPublished - 2021 Mar

Keywords

  • compliance requirement
  • international trade
  • Non-tariff measures
  • sanitary and phytosanitary standard (SPS)
  • technical barriers to trade (TBT)
  • technical regulations

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics
  • Political Science and International Relations

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