Exports, Technical Measures, and Regulatory Heterogeneity

Juan Blyde and Mayra A. Ramírez ()
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Mayra A. Ramírez: Inter-American Development Bank, USA, Postal: 1300 New York Ave.; NW; Washington DC; 20755; U.S.

Journal of Economic Integration, 2024, vol. 39, issue 4, 791-810

Abstract: This paper examines the trade effects of dissimilar technical measures between countries. When a company faces different regulations in different markets, its costs can increase from meeting a wider range of requirements and potentially from its inability to exploit economies of scale. We employ firm-level trade data from Chile to estimate the trade impacts of regulatory heterogeneity at various firm margins. We separate the trade impacts between broad classes of technical measures. The results indicate that regulatory heterogeneity is negatively associated with exports. The impacts are observed on both, the extensive and the intensive margins of exports. There are heterogeneous effects depending on the size of the firms with small firms being disproportionately affected from dissimilar technical measures. We also find that the impact of heterogeneity on conformity assessment requirements is no less important, and potentially more important, than the impact of heterogeneity on production requirements.

Keywords: Non-tariff Barriers; Technical Measures; International Trade (search for similar items in EconPapers)
JEL-codes: F13 F14 F15 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:ris:integr:0921

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