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.
