The Effect of Non-Tariff Measures on Global Value Chain Participation

Upalat Korwatanasakul*, Youngmin Baek

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

This study takes a novel approach by using an additional compliance requirement indicator as a relative proxy for non-tariff measures (NTMs) to measure the impact of NTMs on global value chain (GVC) participation. We conduct a cross-sectional analysis at the industry level, spanning 30 countries with 19 industrial sectors in the year 2015. Our analysis finds that both NTMs and tariffs have negative impacts on backward GVC participation, and the impact of NTMs is greater than that of tariff measures. Therefore, policies that reduce trade costs from policy barriers, especially NTMs, can help promote participation in GVCs.

Original languageEnglish
Pages (from-to)193-212
Number of pages20
JournalGlobal Economic Review
Volume50
Issue number3
DOIs
Publication statusPublished - 2021

Keywords

  • Additional compliance requirement indicator (ACRI)
  • global value chain (GVC)
  • input imports
  • non-tariff measures (NTMs)
  • regulatory distance indicator

ASJC Scopus subject areas

  • Business and International Management
  • Economics, Econometrics and Finance(all)
  • Political Science and International Relations

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