Enforcement of non-tariff measures: does it matter?

Authors

Bernardo S Blum
Ritabrata Bose
Kunal Dasgupta

Document Type

Working Paper

Abstract

We show, theoretically and quantitatively, that the way non-tariff measures (NTMs) are enforced matter for trade and welfare. If enforcement entails a per shipment cost, in equilibrium NTMs take the form of an implicit an-valorem tariff and affect both the intensive and extensive margins of trade. Per shipment costs resulting from NTMs are particularly damaging for smaller, less productive exporters. We argue that NTMs should be enforced in ways that do not create per shipment costs.

Publication Date

1-4-2020

Publisher

Indian Institute of Management Bangalore

Pagination

27p.

Recommended Citation

Blum, Bernardo S; Bose, Ritabrata; and Dasgupta, Kunal, "Enforcement of non-tariff measures: does it matter?" (2020). Working Papers. 571.
https://research.iimb.ac.in/work_papers/571

Relation

IIMB Working Paper-611