Impact of nontariff measures on firms in Tunisia

Анотація

Abstract This paper analyzes the effect of nontariff measures ( NTM s) on firms in Tunisia. It draws a precise picture of NTM s’ effects on firms’ imports. We use firm‐level data to take into account firm heterogeneity. We explore the impact of NTM s on small vs. medium and large firms. We also consider the differentiated impact of NTM s. Some measures have informational content and help reduce information asymmetries. When the endogeneity issue of NTM s is controlled for, results show an overall positive impact of NTM s on imports. They provide evidence that NTM s are more beneficial to the imports of medium and large firms. Moreover, NTM s with informational content have an import enhancing effect. An extended analysis separating importing and exporting firms from those solely importing suggests that both types of firms benefit from the positive effects of NTM s. This result highlights the need to assist small firms facing NTM s. Furthermore, some NTM s with informational content should be addressed carefully and not considered only as barriers to trade to be eliminated. Instead, harmonization efforts between countries can be a better policy.

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