Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/265175 
Year of Publication: 
2021
Series/Report no.: 
IRENE Working Paper No. 21-08
Publisher: 
University of Neuchâtel, Institute of Economic Research (IRENE), Neuchâtel
Abstract: 
In this paper, I estimate the impact of heterogeneity in non-tariff-measures (NTMs) policies on countries' global value chains (GVCs)-related trade and its backward and forward components. I firstly build a regulatory distance (RD) index, which measures the degree of dissimilarity in NTMs structures between two trade partners. By including the RD index in a structural gravity model, I then find a significant negative effect of regulatory distance on total, backward, and forward GVC-related trade. The negative impact results to be even stronger when I conduct the analysis only on manufacturing sectors. On the country dimension, I demonstrate that the effects of regulatory distance are associated with the exporters' and the importers' income levels.
Subjects: 
Gravity equation
non-tariff measures
regulatory distance
trade protection
international trade
global value chains
technical regulations
JEL: 
E16
F13
F14
F15
F63
L51
O40
Document Type: 
Working Paper

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