Korea Trade Review (무역학회지)

Korea Trade Research Association (한국무역학회)
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Effects of Non-tariff Measures on Exports

비관세장벽의 수출효과 - 한국을 중심으로

  • Unjung Whang (Department of International Trade, Jeonbuk National University)
  • Received : 2020.02.11
  • Accepted : 2020.02.26
  • Published : 2020.02.28
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Abstract

This study aims to quantify the effects of non-tariff measures (NTMs) on exports in the Korean manufacturing industry. To do this, we employ product-level export data that includes information about whether or not a product is affected by NTMs. One of the main results is that NTMs (SPS/TBT) on average led to reduction in Korean exports. However, the effects of NTMs differed depending on the income level of the NTM-imposing country. The NTMs imposed by high-income countries, such as U.S.A. and Japan, were found to impede Korean exports, whereas the export effect of NTMs imposed by low-income countries such as China was found to not be statistically significant. In addition, the results analyzed based across industries, income level, and types of NTMs are as follows. First, NTMs imposed on textile-related products generally hindered exports regardless of the type of NTMs, but its negative impact on exports was noticeable in the case of NTMs originating from high-income countries. On the other hand, chemical product-related NTMs were found to lead to an increase in Korean exports, and it had a positive effect in the case of SPS imposed by low-income countries. In other industries except for textile- and chemical-related products, the effects of NTMs on exports were either statistically insignificant or showed inconsistent patterns.

Keywords

Acknowledgement

This paper was supported by research funds for newly appointed professors of Jeonbuk National University in 2018, and it was created by modifying and revising Chapter 3 of "Studies on the Economic Effects of Protectionist Policies and the Implications" Policy Analysis, Korea Institute for International Economic Policy.

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