On the Effects of Non-Tariff Measures on Brazilian Exports

Lucas Ferraz, Marcel Ribeiro and Pedro Monasterio

Revista Brasileira de Economia - RBE, 2017, vol. 71, issue 3

Abstract: This article proposes an alternative methodology for estimating the impacts of TBT/SPS measures on international trade, based on the recent literature of gravity models. A Heckman selection model is applied to the case of Brazilian exports, where the second stage equation is theoretically grounded on the Melitz model of heterogeneous firms. This equation highlights the role played by zero trade flows as well as firm heterogeneity, two factors usually omitted in standard specifications. Based on a simple Cournot model, a preliminary effort is made in order to elucidate the main microeconomic channels through which TBT/SPS measures may affect trade flows.

Date: 2017
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Working Paper: On the effects of non-tariff measures on Brazilian exports (2015)
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