Do Product Standards Matter for Margins of Trade In Egypt? Evidence from Firm-Level Data

Hoda El-Enbaby (h_enbaby@aucegypt.edu), Rana Hendy and Chahir Zaki
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Hoda El-Enbaby: Economic Research Forum (ERF)

No 840, Working Papers from Economic Research Forum

Abstract: According to the World Trade Organization (WTO) standards, countries are allowed to adapt regulations under the Sanitary and Phyto-Sanitary (SPS) and Technical Barriers to Trade (TBT) agreements in order to protect human, animal and plant health as well as environment and human safety. Therefore, using an Egyptian firm-level dataset, we analyze the effects of product standards on two related aspects: first, the probability to export (firm-product extensive margin) and second, the value exported (firm-product intensive margin). We merge this dataset with a new database on specific trade concerns raised in the TBT and SPS committees at the WTO. Our main findings show that SPS measures imposed on Egyptian exporters have a negative impact on the probability of exporting a new product to a new destination. By contrast, the intensive margin of exports is not significantly affected by such measures.

Pages: 35
Date: 2014-06, Revised 2014-06
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Working Paper: Do Product Standards Matter for Margins of Trade in Egypt? Evidence from Firm-Level Data (2014)
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