Easing the burden of non-tariff barriers: a regional and firm-level data analysis
by Farnaz Farnia; Nathalie De Marcellis-Warin; Thierry Warin
International Journal of Economics and Business Research (IJEBR), Vol. 17, No. 4, 2019

Abstract: This article aims at providing a firm-level analysis of non-tariff barriers' (NTBs) categories based on the importance of exports for domestic firms across diverse regions in the world. It exploits cross-sectional data from the World Bank enterprise surveys of 10,266 firms across 81 countries covering the period from 2006 to 2014. The study focuses on four NTBs: customs and trade regulations, tax rate, tax administration, and business licensing and permits. Firms were analysed according to levels of exports and locations. The results show that tax rate and business licensing and permits are more likely to be rated as a severe barrier. The tax administration and customs and trade regulations are more probable to be ranked as minor or no obstacle to trade. The business licensing and permits and tax rate are more likely to be ranked as a severe barrier for the firms within the 51%-75% level of exports. In addition, the majority of the firms with 26%-50% of exports are more likely to rank tax administration and customs and trade regulation as severe barriers.

Online publication date: Mon, 03-Jun-2019

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