The Bilateral Effects of Non-tariff Measures on the Intensive and Extensive Margins of Trade: Some Panel Evidence1

Yujie Shi (), Zhaohui Niu () and Chen Chen ()
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Yujie Shi: Aston University
Zhaohui Niu: Aston University
Chen Chen: Aston University

Open Economies Review, 2025, vol. 36, issue 5, No 10, 1595-1623

Abstract: Abstract This paper investigates how non-tariff measures (NTMs) affect the intensive and extensive margins of trade across 80*79 importer-exporter pairs during 1997–2018. We employ a more accurate proxy for NTMs, namely the bilateral ad-valorem equivalents of NTMs, for analysis. With bilateral data at product level covering a wide coverage of countries over a long span of time, we could address the impact in various dimensions, considering heterogeneity within partner types, product types, NTM types and response time. Our results reflect that NTMs negatively impact both margins of trade, and such effects hold for all types of NTMs. In terms of importers, NTMs of low-income importers have larger adverse impact on the intensive margin, while NTMs in high-income importers more adversely affect the extensive margin. Furthermore, the trade effects of NTMs vary across sectors, especially in the intensive margin. Additionally, NTMs and tariffs have lagged negative effects on both margins of trade. Finally, TBT measures have the most significant adverse impact on imports, especially in the high-income market, compared with other measures.

Keywords: Non-tariff Measures (NTMs); Bilateral Trade; Intensive Margin; Extensive Margin (search for similar items in EconPapers)
JEL-codes: F13 F14 F42 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s11079-025-09799-4

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