Impact of TBT and SPS measures on domestic value-added exports: evidence from the United States

Wu, Jie;Wood, Jacob;Oh, Keun-Yeob;Li, Yilin;Bhuyan, Md Iqbal

Abstract

This study explores the impact that TBT and SPS measures have on 42 countries domestic value-added exports (DVAs) into the US. The results from this empirical analysis show that both TBT and SPS measures have no significant effect on gross exports, however, TBT measures have a significant inhibiting effect on DVAs, indicating that the traditional gross trade estimation approach underestimates the substantial impact of non-tariff measures on trade gains. To be specific, a 1 percentage point increase in TBT measures leads to DVA exports decrease of 2.37%. Moreover, the negative impact is mainly manifested in developing countries and high-technology products.

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Asia-Pacific Journal of Accounting and Economics

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2164-2257

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Routledge

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DOI

10.1080/16081625.2022.2077779