Global value chain integration and non-tariff measures

Irene Garcés and Achim Vogt

Economics Letters, 2024, vol. 235, issue C

Abstract: This paper investigates the degree to which domestic value added embodied in gross trade determines the formation of non-tariff measures (NTMs) imposed at the border and regulatory differences in technical regulation. We apply a recently developed political economy model of trade policies and global value chains to indicators of NTM restrictiveness. Our results demonstrate that higher domestic value added content in imports lowers policy makers’ incentives to impose trade restrictive NTM policies in a similar way as tariffs. These effects are heterogeneous with respect to sectors and income group of the policy-imposing country.

Keywords: Global value chains (GVC); Domestic value added (DVA); Tariffs; Non-tariff measures (NTM); Regulatory differences (search for similar items in EconPapers)
JEL-codes: F1 F13 F68 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:235:y:2024:i:c:s0165176524000028

DOI: 10.1016/j.econlet.2024.111518

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