TY - JOUR
T1 - The Effect of Non-Tariff Measures on Global Value Chain Participation
AU - Korwatanasakul, Upalat
AU - Baek, Youngmin
N1 - Funding Information:
This research was conducted as part of the project of Economic Research Institute for ASEAN and East Asia (ERIA) under research grant from the project, ‘Economic Impact of Non-tariff Measures (NTMs)’. The authors would like to express their sincere appreciation to Dr Doan Thi Thanh Ha (ERIA), Dr Shujiro Urata (ADBI), Dr Kaoru Nabeshima (GSAPS), Dr Qizhong Yang (Aoyama Gakuin University), and other participants in the ERIA workshops on Economic Impact of NTMs for their valuable input and comments. The opinions expressed in this paper are the sole responsibility of the authors and do not reflect the views of ERIA and their respective affiliations.
Publisher Copyright:
© 2020 Institute of East and West Studies, Yonsei University, Seoul.
PY - 2021
Y1 - 2021
N2 - This study takes a novel approach by using an additional compliance requirement indicator as a relative proxy for non-tariff measures (NTMs) to measure the impact of NTMs on global value chain (GVC) participation. We conduct a cross-sectional analysis at the industry level, spanning 30 countries with 19 industrial sectors in the year 2015. Our analysis finds that both NTMs and tariffs have negative impacts on backward GVC participation, and the impact of NTMs is greater than that of tariff measures. Therefore, policies that reduce trade costs from policy barriers, especially NTMs, can help promote participation in GVCs.
AB - This study takes a novel approach by using an additional compliance requirement indicator as a relative proxy for non-tariff measures (NTMs) to measure the impact of NTMs on global value chain (GVC) participation. We conduct a cross-sectional analysis at the industry level, spanning 30 countries with 19 industrial sectors in the year 2015. Our analysis finds that both NTMs and tariffs have negative impacts on backward GVC participation, and the impact of NTMs is greater than that of tariff measures. Therefore, policies that reduce trade costs from policy barriers, especially NTMs, can help promote participation in GVCs.
KW - Additional compliance requirement indicator (ACRI)
KW - global value chain (GVC)
KW - input imports
KW - non-tariff measures (NTMs)
KW - regulatory distance indicator
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U2 - 10.1080/1226508X.2020.1862694
DO - 10.1080/1226508X.2020.1862694
M3 - Article
AN - SCOPUS:85097807154
SN - 1226-508X
VL - 50
SP - 193
EP - 212
JO - Global Economic Review
JF - Global Economic Review
IS - 3
ER -