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On the heterogeneous effects of non-tariff measures: Panel evidence from Peruvian firms

Marco Fugazza (), Marcello Olarreaga and Cristian Ugarte

No 77, UNCTAD Blue Series Papers from United Nations Conference on Trade and Development

Abstract: The major aim of this paper is to assess how different types of NTMs would affect firms' exports allowing for heterogeneous effects along the firm size dimension. The Peruvian experience within the LAIA (Latin American Integration Association) country group is of particular relevance. Descriptive statistics reveal that the share of Peruvian exports directed to LAIA countries has been increasing since 2000. During the same period, the number of exporting firms to that region has been decreasing. A possible explanation could be an intensification of the implementation of NTMs and in particular of technical regulations. This conjecture appears to be validated by empirical results. The latter suggest that firms of size above the median of exporting firms' size distribution have gained from the implementation of new measures (or the amendment of existing ones). This is true for all margins of trade considered in the paper. Their export values increase, the probability of export increases and the probability to leave the exports sector falls. These results are robust to changes in sampling and identification strategies.

Date: 2017
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