Gain without Pain? Non-Tariff Measures, Plants’ Productivity and Markups
This paper studies how productivity and markups respond to non-tariff measures. The analysis uses a novel time-varying data set on all non-tariff measures applied to imported products by Indonesia. Price and quantity information is used to disentan...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2021
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/951461620653294486/Gain-without-Pain-Non-Tariff-Measures-Plants-Productivity-and-Markups http://hdl.handle.net/10986/35567 |
| Summary: | This paper studies how productivity and
markups respond to non-tariff measures. The analysis uses a
novel time-varying data set on all non-tariff measures
applied to imported products by Indonesia. Price and
quantity information is used to disentangle the impact of
non-tariff measures on plants’ technical efficiency and
markups. The findings show that on average, non-tariff
measures generate fewer distortions than import tariffs do.
However, while specific non-tariff measures increase the
quality of the products on which they are applied, others
act as barriers to trade similar to import tariffs. These
results suggest that to gauge their impacts and guide policy
making, non-tariff measures should not be bundled together
in empirical analyses. |
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