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Hidden protectionism? Evidence from non-tariff barriers to trade in the United States

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  • Grundke, Robert
  • Moser, Christoph

Abstract

Can the enforcement of product standards be protectionism in disguise? This paper estimates the costs of non-compliance with U.S. product standards, using a new database on U.S. import refusals from 2002 to 2014. We find that import refusals decrease exports to the United States. This trade reducing effect is driven by developing countries and by refusals without any product sample analysis, in particular during the Subprime Crisis and its aftermath. We also provide evidence that given product standards were enforced more strictly during the crisis while the quality of imported products did not deteriorate. These results are consistent with the existence of counter-cyclical, hidden protectionism due to non-tariff barriers to trade in the United States.

Suggested Citation

  • Grundke, Robert & Moser, Christoph, 2019. "Hidden protectionism? Evidence from non-tariff barriers to trade in the United States," Journal of International Economics, Elsevier, vol. 117(C), pages 143-157.
    • Handle: RePEc:eee:inecon:v:117:y:2019:i:c:p:143-157
    DOI: 10.1016/j.jinteco.2018.12.007
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    More about this item

    Keywords

    Hidden protectionism; International trade; Developing countries; Import refusals; Regulatory costs; Disaggregated; United States;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development

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