Harmonization and mutual recognition: What are the effects on trade?

Gianluca Orefice, Roberta Piermartini and Nadia Rocha

No 332285, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: This paper analyses the effect of harmonization and mutual recognition of standards on trade flows. Although harmonization and mutual recognition are commonly believed to reduce trade costs towards freer trade, their impact on trade is more complex, and little is known about their actual effects. In order to assess which approach has the greatest impact on trade, this paper looks at the evidence stemming from regional trade agreements. Not all regional trade agreements cover TBT area and among those that do, some favour harmonization, others favour mutual recognition. Using a gravity model, we estimate the effects on trade of harmonization and mutual recognition on the patterns of trade. Results show that standards harmonization and mutual recognition enhance trade. Moreover, mutual recognition has a higher positive effect on trade than harmonization, and this is due to mutual recognition of conformity assessment. These results are robust to endogeneity.

Keywords: International Relations/Trade; Agricultural and Food Policy (search for similar items in EconPapers)
Pages: 18
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/332285/files/5808.pdf (application/pdf)

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:ags:pugtwp:332285

Access Statistics for this paper

More papers in Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().