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Evaluating the causal impact of Non-Tariff Measures on Global Value Chain trade: a quasi-experimental approach

Date : Jeudi | 2025-02-13 à 12h30
Lieu : Salle des thèses

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Sylvia NENCI (University of Roma III)

This work investigates the impact of Non-Tariff Measures (NTMs) on Global Value Chain (GVC) trade using a quasi-experimental approach to address non-linearities and endogeneity. Analyzing a panel dataset of NTMs and trade in value-added across 172 countries, with a focus on agriculture, the research finds that NTMs affect GVC trade non-linearly. Most NTMs generally harm agricultural trade, particularly at both low and high levels of intensity, such as technical barriers and sanitary measures. Other NTMs, however, have a positive impact at low intensity, which becomes negative as intensity increases. The study underscores the importance of accounting for self-selection and non-linearities, as well as considering the heterogeneity and intensity of NTMs to refine estimates of their effects. Additionally, it highlights the indirect trade "chain effect" of NTMs, showing that trade restrictions not only impact partner countries but also affect the imposing country’s economy through value chain linkages.