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Product Standards and Margins of Trade: Firm Level Evidence

Lionel Fontagné (), Gianluca Orefice (), Roberta Piermartini and Nadia Rocha

No 4169, CESifo Working Paper Series from CESifo

Abstract: We address the trade effect of restrictive product standards on the margins of trade, by matching a detailed panel of French firm exports with a new database compiling the list of Sanitary and Phyto-Sanitary regulatory measures that have been raised as a concern in dedicated committees of the WTO. By using specific trade concerns to capture the degree of restrictiveness of product standards we focus only on standards that are perceived as a barrier to trade. We analyse their effects on three trade related aspects: (i) probability to export and to exit the export market (firm-product extensive margins), (ii) value exported (firm-product intensive margin) and (iii) export prices. We find that SPS concerns discourage the presence of French exporters in SPS-imposing foreign markets. We also find a negative effect of SPS imposition on the intensive margins of trade. Finally, the former negative effects of SPS are attenuated for big firms.

Keywords: international trade; firm heterogeneity; multi-product exporters; non-tariff barriers (search for similar items in EconPapers)
JEL-codes: F12 F15 (search for similar items in EconPapers)
Date: 2013
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Related works:
Journal Article: Product standards and margins of trade: Firm-level evidence (2015) Downloads
Working Paper: Product Standards and Margins of Trade: Firm Level Evidence (2013) Downloads
Working Paper: Product standards and margins of trade: Firm level evidence (2013) Downloads
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