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dc.titleThe Consequences of Non-Tariff Trade Barriers: Theory and Evidence from Import Licenses in Argentina. Preliminary Results
dc.contributor.authorBernini, Federico
dc.contributor.authorGarcía-Lembergman, Ezequiel
dc.contributor.authorJuarez, Leticia
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageArgentina
dc.coverageArgentina
dc.date.available2024-08-12T00:08:00
dc.date.issue2024-08-12T00:08:00
dc.description.abstractAs WTO regulations rendered tariffs less viable, the trade policy landscape experienced a significant transformation: Non-tariff barriers have proliferated, becoming a central instrument of countries trade policy. How do Non-Tariff Import Barriers affect downstream firms? What role do firm market power and market concentration play in shaping the effects of these barriers? This paper investigates the effects of import licenses (NAILs) in Argentina from 2005 to 2011. We construct a novel database with yearly data on products that require import licenses to analyze the causal effects of NAILs on firms imports, exports, and employment. Our empirical strategy leverages the staggered introduction of NAILs as a unique opportunity for causal identification. We find that NAILs significantly reduce firm imports, leading firms reliant on these imported inputs to decrease exports and employment. In a trade model with oligopolistic competition in export markets, we provide conditions under which firms market power can shape the aggregate impact of NAILs. In markets where a firm is relatively large, it can respond to NAILs by adjusting its markups while maintaining relatively stable prices and output. This reduces the overall impact on consumer prices in more concentrated markets.
dc.format.extent51
dc.identifier.doihttp://dx.doi.org/10.18235/0013108
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/The-Consequences-of-Non-Tariff-Trade-Barriers-Theory-and-Evidence-from-Import-Licenses-in-Argentina.-Preliminary-Results.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectTrade Policy
dc.subjectSmall Business
dc.subjectTrade Barrier
dc.subjectImport
dc.subjectExport
dc.subjectTariff System
dc.subjectForest Resource
dc.subjectLabor
dc.subjectImport of Goods
dc.subjectIntegration and Trade
dc.subject.jelcodeD43 - Oligopoly and Other Forms of Market Imperfection
dc.subject.jelcodeF13 - Trade Policy • International Trade Organizations
dc.subject.jelcodeF14 - Empirical Studies of Trade
dc.subject.jelcodeF42 - International Policy Coordination and Transmission
dc.subject.jelcodeF68 - Policy
idb.identifier.pubnumberIDB-DP-01063
idb.operationRG-K1089
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