Regulatory harmonization in the ASEAN region: The effects of applying different types of non-tariff measures

Mike Webb, Anna Strutt and Terrie Walmsley

No 333045, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: This paper explores the impact of regulatory harmonization on non-tariff measures (NTMs) in six major ASEAN countries (Singapore Malaysia, Indonesia, Thailand, Viet Nam and the Philippines). Our analysis is based on econometric estimates of the impact of different types of NTMs applied by these major ASEAN members obtained in a gravity model framework. Our econometric estimates identify the types of NTMs that are found to have significant negative effects on trade; on both imports of products sold for intermediate production and those sold to final consumers in these ASEAN countries. We explore the effects of regulatory harmonization by simulating the effects of changing – at the product line (HS 6 digit) level - NTMs in major ASEAN markets so that the NTM regime of each major ASEAN member aligns with that of the major ASEAN member that applies the least trade restricting regulatory regime in a particular sector. The expected overall trade effect of changes in the types of NTMs applied as a result of this regulatory harmonization is calculated using our estimates of the trade effects of different types of NTMs. To enable general equilibrium interactions and provide estimates of welfare effects, we incorporate our estimates of the effect of regulatory harmonization into the IESC model, which is a modified version of the GTAP model, using its own more detailed database alongside the GTAP version 9 database.

Keywords: International; Relations/Trade (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:333045

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