The impact of technical regulations on trade: Evidence from South Africa
MPRA Paper from University Library of Munich, Germany
The purpose of this study is to investigate empirically the impact of technical barriers to trade (TBTs) by using the gravity model. The study used data from South Africa’s exports of all products and other product groupings destined to 57 selected countries which comprise both developing and developed countries. To control for misspecification error the study incorporated other explanatory variables. STATA system version 13 was used to analyze the regression of data ranging from 1995 to 2015. The results revealed that TBT notifications in general are trade restrictive. The regression results unravel that TBTs negatively affect mechanic and electrical products more than other product groupings. Accordingly for all exports in general the study’s findings are an increase in the number of TBTs has an effect of reducing exports by 4.88% on average. Given the results from the study it is imperative for South Africa to harmonize its standards with its trading partners.
Keywords: Gravity Model; South Africa; Technical Regulation; WTO (search for similar items in EconPapers)
JEL-codes: F1 F4 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:76757
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