• ISSN: 2010-023X (Print)
    • Abbreviated Title: Int. J. Trade, Economics and Financ.
    • Frequency: Quaterly
    • DOI: 10.18178/IJTEF
    • Editor-in-Chief: Prof.Tung-Zong (Donald) Chang
    • Managing Editor: Ms. Shira. W. Lu
    • Abstracting/ Indexing:  Crossref, Electronic Journals Library , EBSCO
    • E-mail: ijtef.editorial.office@gmail.com
HOME > Archive > 2022 > Volume 13 Number 1 (Feb. 2022) >
IJTEF 2022 Vol.13(1): 1-6 ISSN: 2010-023X
DOI: 10.18178/ijtef.2022.13.1.714

Adoption of Technical Barriers to Trade and the Quality of Exports: Empirical Analysis on the Machinery Sector

Kunhyui Kim

Abstract—Non-tariff Measures (NTMs) ensure the safety of consumer health and the environment. However, regardless of the sound purpose of NTMs, past literature often addressed the negative impact of NTMs on international trade. This research narrows down NTMs to Technical Barriers to Trade (TBT) in the machinery sector to show whether the additional imposition of TBT contributes to or hampers the quality of imported goods. We employ newly published NTMs data from UNCTADTRAINS by constructing an Additional Compliance Requirement Indicator. The results indicate that additional TBT negatively affects the quality of imported goods in the machinery sector with statistical significance. The imposition of completely different TBT regulations lowers the quality of imported machinery goods by $38. Additional TBT may ensure minimum quality, but firms will engage in fewer innovative activities in the long term, leading to the eventual deterioration of quality. Therefore, with the considerable impact of TBT on consumer safety, each government needs to engage in TBT harmonization to prevent unnecessary trade costs.

Index Terms—Non-tariff measures, poisson pseudo maximum likelihood, product quality, technical barriers to trade.

Kunhyui Kim is with the Graduate School of Asia-Pacific Studies, Waseda University, Tokyo, Japan (e-mail: twista0628@toki.waseda.jp).

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Cite: Kunhyui Kim, "Adoption of Technical Barriers to Trade and the Quality of Exports: Empirical Analysis on the Machinery Sector," International Journal of Trade, Economics and Finance vol.13, no.1, pp. 1-6, 2022.

Copyright © 2022 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

 

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