We use cookies on this website to give you a better user experience. By continuing to browse the site, you are agreeing to our use of cookies. Learn more

The Effect of Non-Tariff Measures on Global Value Chain Participation

The Effect of Non-Tariff Measures on  Global Value Chain Participation
21 June 2021
Upalat Korwatanasakul, Youngmin Baek
ASEAN, global value chains, Regulation and Governance, Trade

Print Article:

This study examines the impact of non-tariff measures (NTMs) on global value chain (GVC) participation and the underlying mechanisms. Our study employs a novel approach using an additional compliance requirement indicator as a relative proxy for NTMs to measure their impact on GVC participation. We conduct a cross-sectional analysis at the industry level, spanning 19 industrial sectors in 30 countries in 2015. We combine our additional compliance requirement indicator dataset calculated from NTM data in the Trade Analysis Information System, with our dataset on trade in value added estimated from the Organisation for Economic Co-operation and Development Inter-Country Input–Output Table. Our analysis finds that, while NTMs and tariffs both negatively impact backward GVC participation, the impact of NTMs is greater than that of tariff measures. Moreover, the estimated results show that inward foreign direct investment is positively associated with backward GVC participation. Therefore, policies that reduce trade costs from policy barriers, especially NTMs, and attract more foreign direct investment can help promote GVC participation.

The Effect of Non-Tariff Measures on Global Value Chain Participation

Search ERIA.org

Latest Multimedia

Indonesia's ASEAN Chairmanship 2023 High-Level Policy Dialogue: ASEAN Digital Community 2045

ERIA Knowledge Lab Discusses Scaling Up Innovation and Digital Technology Ecosystem

Is ASEAN Ready for Electric Vehicles? | ASEAN Insights Podcast

Latest Articles

energy, hydrogen, carbon neutrality
16 July 2024
Editor(s)/Author(s): Shigeru Kimura, Alloysius Joko Purwanto, Citra Endah Nur Setyawati, Setsuo Miyakoshi
Hydrogen is a crucial fuel for achieving global carbon neutrality, and ERIA has been conducting[...]
Energy, Energy Transition, Carbon-neutral
12 July 2024
Editor(s)/Author(s): Han Phoumin, Yamada Fumiko
ASEAN is committed to developing renewable energy sources as part of the energy transition to[...]