Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/315906 
Year of Publication: 
2024
Series/Report no.: 
IDB Working Paper Series No. IDB-WP-1629
Publisher: 
Inter-American Development Bank (IDB), Washington, DC
Abstract: 
As WTO regulations limited tariffs, non-tariff barriers, such as import licenses (NAILs), became essential trade policy tools. This paper examines how NAILs impact downstream firms in Argentina. Using a novel dataset and the staggered introduction of NAILs between 2005-2011 for identification, we analyze their causal effects on firms' imports and the subsequent effect on exports and employment. Results indicate that NAILs reduce firms' imports, inducing more exposed firms to reduce exports and employment. A trade model with oligopolistic competition suggests that firms' market power can moderate the impact of NAILs in highly concentrated markets.
Subjects: 
Non-trade barriers
Trade policy
Market power
JEL: 
D43
F13
F14
F42
F68
L1
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

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