Technical regulations and exporters’ dynamics: evidence from developing countries

Valentina Rollo

International Economics and Economic Policy, 2023, vol. 20, issue 1, No 6, 189-212

Abstract: Abstract This paper estimates the relation between technical regulations and firms’ export dynamics using country-sector indicators from two firm-level datasets—the novel UN ITC NTM Business Surveys and the World Bank Exporter Dynamics Database—for 18 developing countries over the 2010–2014 period. The results from the analysis indicate that export markets where exporters perceive technical regulations as more burdensome are characterized by a lower number of exporters, a lower value of exports, and a higher concentration rate. These results are in line with the prediction of the heterogeneous firms’ trade theory (Melitz, 2003): additional trade costs are expected to push some firms out of exporting, therefore reducing the total number of exporters and increasing concentration. Also, technical regulations hit small firms’ exports twice as hard as they hit large firms, confirming that smaller firms react more strongly to changes in trade costs.

Keywords: NTMs; Trade policy; Heterogeneous firms; Intensive margins; Extensive margins (search for similar items in EconPapers)
JEL-codes: F14 L25 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10368-023-00554-z Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:iecepo:v:20:y:2023:i:1:d:10.1007_s10368-023-00554-z

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/10368/PS2

DOI: 10.1007/s10368-023-00554-z

Access Statistics for this article

International Economics and Economic Policy is currently edited by Paul J.J. Welfens, Holger C. Wolf, Christian Pierdzioch and Christian Richter

More articles in International Economics and Economic Policy from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().