The impact of Technical Barriers to Trade (TBT) on importing countries - an analysis using China's manufacturing firms level data

Wang, Jianyang 2024. The impact of Technical Barriers to Trade (TBT) on importing countries - an analysis using China's manufacturing firms level data. PhD Thesis, Cardiff University. Item availability restricted.

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Abstract

Technical Barriers to Trade (TBTs) are regulatory measures aimed at protecting national security, the environment, and product quality. Despite the relaxation of tariffs, TBTs have increased significantly, with the WTO reporting a rise from 389 in 1995 to 3,958 in 2021. This study examines the impact of TBTs imposed by the Chinese government on Chinese importing firms, particularly focusing on imports and productivity. This research combines data from Chinese Customs Records and firm surveys (2002- 2007), along with TBT information imposed by the Chinese government. The dataset includes import values, origin countries, firm characteristics, and products at the HS4 level. Specific Trade Concerns (STCs) are used to measure TBT impact, distinguishing between countries that raised concerns and those that did not. The Correia (2016) is applied to estimate the Multi-Way Fixed Effects Linear Model of causal relationship between TBTs and trade outcomes. The analysis reveals that TBTs generally reduce trade flows, decreasing the value of affected imports. Firms adjust their import behavior based on the source: imports from countries that raised concerns decline, while those from unconcerned countries increase. Furthermore, TBT implementation negatively impacts firm productivity, particularly for smaller firms, which experience more significant adverse effects. These findings highlight the trade diversion effects of TBTs: while TBTs decrease imports from concerned countries, they simultaneously increase imports from unconcerned countries. Most previous studies (e.g., Singh and Chanda, 2021; Fontagné and Orefice, 2018) treat STCs as a binding measure and apply them to all countries, without distinguishing between those that raised concerns and those that did not. This paper, however, differentiates firm imports based on whether they are from concerned or unconcerned countries and analyzes the varying impact of TBTs by origin.

Item Type:	Thesis (PhD)
Date Type:	Completion
Status:	Unpublished
Schools:	Schools > Business (Including Economics)
Date of First Compliant Deposit:	15 August 2025
Last Modified:	15 Aug 2025 13:41
URI:	https://orca.cardiff.ac.uk/id/eprint/180442

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