Quantifying the Trade Effects of NTMs: A Review of the Empirical Literature

In recent years, the imposition of Non-Tariff Measures (NTMs) has increased rapidly both in quantity and importance. This development, with its considerable economic impact, particularly within the area of global trade, has prompted numerous scholars to explore the direction and magnitude of the trade effects of NTMs. Moreover, increased efforts are being placed on further exploring the determinants behind the use of NTMs, as well as their policy implications. The current paper aims to survey the empirical trade literature, in order to uncover the available responses to major questions regarding the trade effects of NTMs, principally of TBT and SPS measures. Among the questions posed are: (1) How do specific types of NTMs affect imports and exports? (2) Are developing countries more sensitive to NTMs? (3) Are small-medium sized firms more adversely affected by NTMs? (4) How are particular sectors/products affected by NTMs? And, (5) Do Harmonization and Mutual Recognition necessarily impact trade positively?