ERIA-技术贸易壁垒、产品质量与贸易利润-企业层面的证据（2022.2.8）.docx

ERIA-DP-2021-54 ERIA Discussion Paper Series No. 421 Technical Barriers to Trade, Product Quality and Trade Margins: Firm-level Evidence* HA Thi Thanh Doan? Economic Research Institute for ASEAN and East Asia (ERIA) Hongyong ZHANG? Research Institute of Economy, Trade and Industry (RIETI), Japan February 2022 Abstract: As tariffs have declined to a low level, the trade literature has paid increasing attention to the impact of non-tariff measures. Unlike tariffs, non-tariff measures could act as both a barrier to trade and a catalyst for quality upgrading. This study examines the effect of technical barriers to trade (TBTs) on trade margins and quality upgrading at the firm level. To do so, we utilise rich Chinese Customs data recording the universe of export transactions from 2000 to 2012, matched with the Annual Survey of Industrial Firms and the World Trade Organization’s Specific Trade Concerns database. We find that TBTs are associated with higher probability to exit. Surviving exporters enjoy larger sales and charge higher export prices. We also find robust evidence for the quality upgrading effects of TBTs. Firms upgrade their product quality by expanding their research and development and investment and importing more intermediate inputs and capital goods. The positive impact of TBTs on quality upgrading offsets that on price increases, resulting in lower quality-adjusted export prices. This suggests the net welfare-enhancing effect of TBTs for the consumers of imported products. The results hold after controlling for potential endogeneity and across various specifications. Keywords: Non-tariff Measures, Technical Barrier to Trade, Trade Margins, Quality upgrading, Firm Heterogeneity, China JEL classification: F13, F14, D22 * This study is conducted as part of the project on ‘Global Market Entry, Survival and Exit of Firms: Understanding the Process and the Effects’ by the Economic Research Institute for ASEAN and East Asia (ERIA). The authors would like to t